Question

If the marginal product of labour is below the average product, it must be true that ________.

• A. the marginal product of labour is negative
• B. the marginal product of labour is zero
• C. the average product of labour is falling
• D. the average product of labour is negative

Answer 1

Answer: (C)

the average product of labour is falling

When the marginal product of labour curve is lower than the average product of labour curve, i.e., the MPL $<$ APL, the average product of labour will tend to fall since the marginal product is decreasing with an increase of labour input.