Asked by
Daniel Holmes
on Nov 04, 2024
Verified
When the marginal product of labor ________ the average product of labor, then the average product is maximized.
A) equals
B) is greater than
C) is less than
D) The average product of labor is never maximized.
Marginal Product
It is the increase in output that results from a one-unit increase in the input, keeping all other inputs constant.
Average Product
The output per unit of a particular input, such as labor or capital, calculated by dividing total product by the quantity of input.
- Understand the concept of marginal and average products of labor and their relationship to labor productivity.
Verified Answer
EE
Learning Objectives
- Understand the concept of marginal and average products of labor and their relationship to labor productivity.