When Priya added one more worker, she noticed that her average product of labor $\left(A P_{L}\right)$ increased, and if she adds yet another worker her $A P_{L}$ increases again.

What MUST also be true about the marginal product of labor $\left(M P_{L}\right)$ based on this information?

Choose 1 answer:
(A) $M P_{L}$ is negative.
(B) $M P_{L}$ equals zero.
(c) $M P_{L}$ equals $A P_{L}$.
(D) $M P_{L}$ is less than $A P_{L}$.
(E) $M P_{L}$ is greater than $A P_{L}$.

Question

When Priya added one more worker, she noticed that her average product of labor $\left(A P_{L}\right)$ increased, and if she adds yet another worker her $A P_{L}$ increases again.

What MUST also be true about the marginal product of labor $\left(M P_{L}\right)$ based on this information?

Choose 1 answer:
(A) $M P_{L}$ is negative.
(B) $M P_{L}$ equals zero.
(c) $M P_{L}$ equals $A P_{L}$.
(D) $M P_{L}$ is less than $A P_{L}$.
(E) $M P_{L}$ is greater than $A P_{L}$.

Accepted Answer

∻Solution∻ ‖ a ⋮ Relationship between MPL and APL: When the average product of labor (APL) increases as a result of hiring an additional worker, it implies that the marginal product of labor (MPL) of the last worker hired is greater than the APL prior to that worker being hired. ‖ ∻Answer∻ ⚹ (E) $M P_{L}$ is greater than $A P_{L}$ ⚹ ∻Key Concept∻ ⚹ Marginal Product of Labor (MPL) and Average Product of Labor (APL) Relationship ⚹ ∻Explanation∻ ⚹ If adding another worker causes the APL to increase, the MPL of the additional worker must be higher than the APL before the worker was added. This is because the MPL is the additional output from hiring one more worker, and for it to raise the average, it must be above the current average. ⚹◊What is the relationship between the marginal product of labor (MPL) and the average product of labor (APL) in the context of this scenario?⍭ Generate me a similar question◊

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