When the marginal product of labor exceeds the average product of labor
A) the average product of labor is increasing.
B) the average product of labor is decreasing.
C) the total product curve is negatively sloped.
D) the firm is experiencing decreasing returns to scale.

Question

Quizplus · Accepted Answer

When the marginal product of labor is greater than the average product of labor, it pulls the average product up, indicating that the average product of labor is increasing.

When the Marginal Product of Labor Exceeds the Average Product