All else constant,an increase in productivity has the effect of causing:
A)the marginal product of labor to increase and no effect on the average product of labor.
B)the average product of labor to increase and no effect on the marginal product of labor.
C)the marginal product of labor to increase and the average product of labor to decrease.
D)both the marginal and average product of labor to increase.

Question

Quizplus · Accepted Answer

An increase in productivity means that output per unit of input, such as labor, increases. This will lead to both the marginal and average product of labor to increase, as the same amount of labor can produce more output.

All Else Constant,an Increase in Productivity Has the Effect of Causing