Suppose you are using 10 units of labor in your short-run production process. At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14. Given this, we know that the
A)average product of labor must be increasing.
B)average product of labor must be decreasing.
C)marginal product of labor must be increasing.
D)marginal product of labor must be decreasing.

Question

Quizplus · Accepted Answer

Since the marginal product of the last unit of labor (14) is greater than the average product of labor (10), it means that the addition of the last unit of labor has increased the average output per unit of labor, indicating that the average product of labor is increasing.

Suppose You Are Using 10 Units of Labor in Your