are based on the short-run production function in the graph at right.

-For labor input levels between X and Y:
A)the marginal product of labor is falling,but is greater than the average product of labor
B)both the marginal product and the average product of labor are falling
C)the marginal product of labor is rising and the average product of labor is falling
D)both the marginal product and the average product of labor are rising

Question

are based on the short-run production function in the graph at right.

-For labor input levels between X and Y:
A)the marginal product of labor is falling,but is greater than the average product of labor 
B)both the marginal product and the average product of labor are falling 
C)the marginal product of labor is rising and the average product of labor is falling 
D)both the marginal product and the average product of labor are rising

Quizplus · Accepted Answer

When the marginal product of labor is falling but still greater than the average product, it indicates that each additional unit of labor adds less output than the previous one, but the overall contribution is still above the average, causing the average to rise.

Are Based on the Short-Run Production Function in the Graph