If the average product of dental assistants is _______, then the marginal product of that labor must be _______ its average product.

Question

Quizplus · Accepted Answer

According to the law of diminishing marginal returns, as more units of a variable input (such as labor) are added to a fixed input (such as machinery), the marginal product of that variable input eventually decreases. Therefore, if the average product is decreasing, it implies that the marginal product must be less than the average product. Option C is the only one that reflects this relationship.

If the Average Product of Dental Assistants Is _______, Then