Explain the relationship between marginal product and average product
What will be an ideal response?
As the quantity of labor initially increases the firm experiences increasing marginal returns and the marginal product of labor increases. The marginal product of labor is greater than the average product over this range of labor, so the average product of labor increases when the quantity of labor increases. Eventually, diminishing marginal returns causes the marginal product of labor to fall. When the marginal product of labor falls below the average product, the average product decreases as the quantity of labor increases.
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What is GATT and what happened to tariff rates as a result of GATT?
What will be an ideal response?
The demand for labor determines the
A. Minimum wage rate. B. Total number of people who want to work. C. Willingness and ability of people to work at alternative wage rates. D. Number of available jobs.