If marginal product of labor is below average product of labor, then
A) average product of labor is flat.
B) average product of labor is increasing.
C) average product of labor is decreasing.
D) may be increasing, decreasing or flat

Question

Quizplus · Accepted Answer

When the marginal product of labor is below the average product of labor, it means that adding more labor is decreasing the average output per worker, hence the average product of labor is decreasing.

If Marginal Product of Labor Is Below Average Product of Labor