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Question
Microeconomics
Posted 2 months ago

If the marginal product of labor (MPL)\left(M P_{L}\right) is 10 pounds of cheese and the average product of labor (APL)\left(A P_{L}\right) is 20 pounds of cheese, which of the following best describes what happens if one more unit of labor is added?

Choose 1 answer:
(A) MPLM P_{L} equals total product of labor (TPL)\left(T P_{L}\right)
(B) APLA P_{L} decreases.
(c) APLA P_{L} is maximized
(D) Total product of labor (TPL)\left(T P_{L}\right) increases
(E) MPLM P_{L} increases
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Answer from Sia
Posted 2 months ago
Solution
a
Given: The marginal product of labor (MPLMP_L) is 10 pounds of cheese and the average product of labor (APLAP_L) is 20 pounds of cheese
b
Relationship: When MPLMP_L is less than APLAP_L, adding one more unit of labor will decrease APLAP_L
Answer
(B) APLA P_{L} decreases.
Key Concept
Marginal Product of Labor and Average Product of Labor Relationship
Explanation
When the marginal product of labor (MPLMP_L) is less than the average product of labor (APLAP_L), adding an additional unit of labor will cause the average product of labor to decrease. This is because the new worker's contribution is less than the current average, pulling the average down.

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