The marginal product of labour initially ________ and eventually ________.The average product of labour initially ________ and eventually ________.
A)increases;decreases;increases;decreases
B)decreases;increases;decreases;increases
C)increases;decreases;decreases;increases
D)decreases;increases;increases;decreases
E)increases;is constant;increases;decreases

Question

Quizplus · Accepted Answer

The marginal product of labor initially increases due to specialization and efficiencies but eventually decreases due to the law of diminishing returns. Similarly, the average product of labor initially increases as more workers contribute positively to output, but eventually decreases as the effect of diminishing returns sets in.

The Marginal Product of Labour Initially ________ and Eventually ________

The Marginal Product of Labour Initially and Eventually