If marginal product is smaller than average product, then average product must be falling as employment rises.

Name: If marginal product is smaller than average product, then average product must be falling as employment rises.
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Quizplus · Accepted Answer

When the marginal product of labor is less than the average product, adding more labor will decrease the average product, indicating that the average product is falling as employment increases.

If Marginal Product Is Smaller Than Average Product, Then Average