In economics and in particular neoclassical economics, the marginal product or marginal physical productivity of an input (factor of production) is the change in output resulting from employing one more unit of a particular input (for instance, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant. WebExpert Answer. Correct Answer is option A : The average product of labour is increasing. If marginal product of labor is greater than the average product of labor, then with …
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What Is Marginal Product of Labor? (And How To Calculate)
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