When labour inputs are finely divisible, the average product of labour curve is ______ sloping at L if the marginal product is ______ the average product.
A) Downward; above
B) Upward; above
C) Upward; below
D) Vertical; equal to

Question

Quizplus · Accepted Answer

When the marginal product of labor is above the average product, it means that each additional unit of labor is producing more than the average, which pulls the average product up, resulting in an upward sloping average product of labor curve at that point.

When Labour Inputs Are Finely Divisible, the Average Product of Labour