If marginal product of labour is below average product of labour, then:

CA Foundation · Business Economics · MTP · June 2024
If marginal product of labour is below average product of labour, then:
(A) A. average product of labour is flat.
(B) B. average product of labour is increasing.
(C) C. average product of labour is decreasing.
(D) D. may be increasing, decreasing or flat

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. average product of labour is decreasing.

Topics: Theory of Production and Cost

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