If marginal productivity is decreasing as more labor is hired, then average productivity must be decreasing as well
Indicate whether the statement is true or false
False . The change in average productivity is not determined by the change in marginal productivity. Average productivity can be increasing even when marginal productivity is decreasing. Average productivity can only be decreasing when marginal productivity is below average productivity.
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Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
a. "Central Bank Raises Interest Rates" b. "Auto Dealership to Cut Prices" c. "Fanny's Freeze Dried Prunes to Lay Off 50 Workers" d. "United Workers Union to Strike April 15" e. "Brazilian Coffee Bean Crop Falls by 10 Percent"
The law of increasing costs causes the production possibilities curve to be bowed outward from the origin
Indicate whether the statement is true or false