If a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will: a) Decrease the average product of labour. b) Not change the average product of labour. c) Increase the marginal product of labour. d) Decrease its total product. e) None of the preceding statements is correct.
If a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will: a) Decrease the average product of labour. b) Not change the average product of labour. c) Increase the marginal product of labour. d) Decrease its total product. e) None of the preceding statements is correct.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 3SQP
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If a firm's marginal product of labour is less than its average product of labour, then an increase in the quantity of labour it employs definitely will:
a) Decrease the average product of labour.
b) Not change the average product of labour.
c) Increase the marginal product of labour.
d) Decrease its total product.
e) None of the preceding statements is correct.
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