Question

If the marginal product of labour is rising, then the average product of labour

A can be rising, falling, or at its maximum and the marginal cost can be rising, Talling or at its minimum
B. can be rising, falling, or at its maximum; but the marginal cost must be rising
C must be rising but the marginal cost must be falling
D. must be faling but the marginal cost can be rising, falling, or at its minimum
E must be falling, but the marginal cost must be rising

Answer 1

If the marginal product of labour is rising, the average product of labour can be rising, falling, or at its maximum; and the marginal cost can be rising, falling, or at its minimum.

Step-by-step explanation:

The marginal product of labor measures the additional output that is produced when one additional unit of labor is employed. If the marginal product of labor is rising, it means that each additional unit of labor is contributing more to the total output.

The average product of labor, on the other hand, measures the total output produced per unit of labor. If the marginal product of labor is rising, it could mean that the average product of labor is also rising, falling, or at its maximum.

The marginal cost measures the additional cost that is incurred by producing one additional unit of output. It is typically rising because as production increases, the additional cost of producing each unit tends to increase. However, it is not necessarily dependent on the behavior of the average product of labor. Therefore, the marginal cost can be rising, falling, or at its minimum while the average product of labor is rising, falling, or at its maximum.