All else constant, an increase in productivity has the effect of causing: both the marginal and average product

All else constant, an increase in productivity has the effect of causing:

both the marginal and average product of labor to increase.
the marginal product of labor to increase and the average product of labor to decrease.
the marginal product of labor to increase and no effect on the average product of labor.
the average product of labor to increase and no effect on the marginal product of labor

 

 

 

 

answer:

both the marginal and average product of labor to increase.

Explanation:

Marginal product (MP) is the addition to the total product due to one unit increase in variable input (Labor). When productivity increase, it means MP will increase.

Again, since Average Product (AP) = TP/ Variable Input. An increase in producitivity of variable input will definitely increase AP

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