Suppose you are using 10 units of labor in your short-run production process.At this point, the average product of your labor is 10, and the marginal product of the last unit of labor was 14.Given this, we know that the:
A)Average product of labor must be increasing
B)Average product of labor must be decreasing
C)Marginal product of labor must be increasing
D)Marginal product of labor must be decreasing

Question

Quizplus · Accepted Answer

The average product of labor is increasing because the marginal product of the last unit of labor (14) is greater than the current average product of labor (10).

Suppose You Are Using 10 Units of Labor in Your