For the production function Q = Q(L),the average product of labor is given as AP_L = Q(L)/L.Taking the deriviative with respect to L,we have dAP_L/dL = 1/L(dQ/dL - Q/L),implying that: A)when the MP_L is equal to the AP_L,AP_L is decreasing. B)when the MP_L is greater than the AP_L,AP_L is decreasing. C)when the MP_L is greater than the AP_L,AP_L is increasing. D)when the MP_L is less than the AP_L,AP_L is increasing.

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Quizplus · Accepted Answer

The derivative of the average product of labor (APS) with respect to labor (L) is positive (indicating an increase in APS) when the marginal product of labor (MPS) is greater than APS, as shown by the formula $ \frac{1}{L}(\frac{dQ}{dL} - \frac{Q}{L}) $. This is because the term $ \frac{dQ}{dL} - \frac{Q}{L} $ will be positive when MPS ($ \frac{dQ}{dL} $) is greater than APS ($ \frac{Q}{L} $).

For the Production Function Q = Q(L),the Average Product of Labor