If the marginal product of labor equals the average product of labor, then the
A) average product is maximized.
B) marginal product is maximized.
C) marginal product is still increasing.
D) average product is still increasing.

Question

Quizplus · Accepted Answer

When the marginal product of labor equals the average product of labor, it indicates that the average product is maximized. This is because the average product of labor increases as long as the marginal product is above it and starts to decrease once the marginal product falls below the average product.

If the Marginal Product of Labor Equals the Average Product