Question

Which of the following is true of the relationship between the average product of labor and the marginal product of laborLOADING...​? A. Whenever the marginal product of labor is decreasingdecreasing​, the average product of labor must be decreasingdecreasing. B. The marginal product of labor equals the average product of labor for the quantity of workers where the marginal product of labor is at its maximum. C. The average product of labor equals the sum of the marginal products of labor. D. Whenever the marginal product of labor is lessless than the average product of​ labor, the average product of labor must be increasingincreasing. E. Whenever the marginal product of labor is greatergreater than the average product of​ labor, the average product of labor must be increasingincreasing.

Answer 1

Answer:

E. Whenever the marginal product of labor is greater than the average product of​ labor, the average product of labor must be increasing.

Explanation:

Average product of labor (APL), which is also called The Average product (AP),  is the overall product divided by the overall number of labor. It is the average quantity of output that each worker can produce. The average product curve and marginal product (MP) curve intersect at the maximum average product, while the marginal product of labor is the adjustment in output which is as a result of employing an additional unit of labor.

Going to the question we can conclude that Whenever the marginal product of labor is greater than the average product of labor, average product of labor must be increasing , that is it pulls the average product of labor up.  

And anytime the marginal product of labour is smaller than the average product of labour must be decreasing.