When the average product of labor is greater than the marginal product of labor
A) the marginal product of labor must be increasing as labor increases.
B) there must be increasing marginal returns.
C) the average product of labor is decreasing as labor increases.
D) None of the above answers is correct

Question

Quizplus · Accepted Answer

When the average product of labor is greater than the marginal product of labor, it indicates that the average product is decreasing as more labor is added, because the marginal product pulls the average down.

When the Average Product of Labor Is Greater Than the Marginal