-The above figure depicts a short-run production function for Albert's Pretzels.The marginal productivity of labor
A) rises then falls as the amount of capital increases.
B) falls then rises as the amount of labor increases.
C) is greater than or equal to the average productivity of labor for all amounts of labor.
D) is less than or equal to the average productivity of labor for all amounts of labor.

Question

-The above figure depicts a short-run production function for Albert's Pretzels.The marginal productivity of labor
A) rises then falls as the amount of capital increases. 
B) falls then rises as the amount of labor increases. 
C) is greater than or equal to the average productivity of labor for all amounts of labor. 
D) is less than or equal to the average productivity of labor for all amounts of labor.

Quizplus · Accepted Answer

In the short-run production function, the marginal productivity of labor typically decreases as more labor is added, due to the law of diminishing returns. This means that the marginal productivity of labor is often less than or equal to the average productivity of labor.

-The Above Figure Depicts a Short-Run Production Function for Albert's