Choose the correct statement. A. When total product is increasing, average product of labor and marginal product
Question:
Choose the correct statement.
A. When total product is increasing, average product of labor and marginal product of labor are both increasing. It is not possible for a firm to experience simultaneously an increasing average product but a diminishing marginal product.
B. When marginal product of labor is greater than or equal to average product of labor, and marginal product of labor is either increasing or decreasing, average product of labor is increasing because each additional worker is producing more than the average worker.
C. When marginal product of labor is greater than average product of labor and marginal product of labor is either increasing or decreasing, average product of labor is increasing because each additional worker is producing more than the average worker.
D. When marginal product of labor is increasing or decreasing, average product of labor is greater than marginal product of labor because total product is always increasing