Figure 7.2 -Refer to Figure 7.2.The average product of labour declines after L₂ because A)the marginal product of labour is below the average product of labour. B)the marginal product of labour is falling. C)the marginal product of labour is negative. D)the marginal product of labour is positive.

Question

Quizplus · Accepted Answer

The average product of labor declines after a certain point because the marginal product of labor (additional output from an additional unit of labor) becomes less than the average product of labor, pulling the average down.

Figure 7.2 -Refer to Figure 7.2.The Average Product of Labour Declines After