Solved

For the Production Function Q = Q(L),the Average Product of Labor

Question 67

Multiple Choice

For the production function Q = Q(L) ,the average product of labor is given as APL = Q(L) /L.Taking the deriviative with respect to L,we have dAPL/dL = 1/L(dQ/dL - Q/L) ,implying that:


A) when the MPL is equal to the APL,APL is decreasing.
B) when the MPL is greater than the APL,APL is decreasing.
C) when the MPL is greater than the APL,APL is increasing.
D) when the MPL is less than the APL,APL is increasing.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions