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Microeconomics

Course: Microeconomics > Unit 6

Lesson 1: Introduction to production and costs

The production function

AP.MICRO: PRD‑1 (EU), PRD‑1.A (LO), PRD‑1.A.1 (EK), PRD‑1.A.2 (EK), PRD‑1.A.3 (EK)

When Priya added one more worker, she noticed that her average product of labor (A, P, start subscript, L, end subscript) increased, and if she adds yet another worker her A, P, start subscript, L, end subscript increases again.

What MUST also be true about the marginal product of labor (M, P, start subscript, L, end subscript) based on this information?

(Choice A)
M, P, start subscript, L, end subscript equals zero.
(Choice B)
M, P, start subscript, L, end subscript is greater than A, P, start subscript, L, end subscript.
(Choice C)
M, P, start subscript, L, end subscript equals A, P, start subscript, L, end subscript.
(Choice D)
M, P, start subscript, L, end subscript is less than A, P, start subscript, L, end subscript.
(Choice E)
M, P, start subscript, L, end subscript is negative.

Stuck?

Microeconomics

Course: Microeconomics > Unit 6

Problem