Question

The marginal product of labor Multiple Choice measures how output changes as the wage rate changes. is less than the average product of labor when the average product of labor is decreasing. is negative when adding another unit of labor decreases output. both "measures how output changes as the wage rate changes" and "is less than the average product of labor when the average product of labor is decreasing". both "is less than the average product of labor when the average product of labor is decreasing" and "is negative when adding another unit of labor decreases output".

Answer 1

Answer:

is less than the average product of labor when the average product of labor is decreasing.

is negative when adding another unit of labor decreases output.

Explanation:

The marginal product of labor refers to the change in the output with respect to adding additional or extra units of labor keeping other factors constant.

The formula for computing the marginal product of labor is

= Total product ÷ Change in labor

By dividing the total product from the change in labor we can get the marginal product of labor

It is always less than the average product of labor in the case when it is declined i.e average product labor

And it would be negative when extra or other units is added that result into a decrease in an output