If the average productivity of labor equals the marginal productivity of labor,then
A) the average productivity of labor is at a maximum.
B) the marginal productivity of labor is at a maximum.
C) Both A and B above.
D) Neither A nor B above.

Question

Quizplus · Accepted Answer

When the average productivity of labor equals the marginal productivity of labor, it means the average productivity of labor is at its maximum. This is because, as more units of labor are added, if the marginal productivity equals the average, the average will no longer increase; it has reached its peak.

If the Average Productivity of Labor Equals the Marginal Productivity