It is easy to conclude that when hiring workers in the short run whose marginal productivity rises, the average product of labor will rise as well. However, if workers productivity declines, average product of labor may still be rising. Explain why this may happen.
It is easy to conclude that when hiring workers in the short run whose marginal productivity rises, the average product of labor will rise as well. However, if workers productivity declines, average product of labor may still be rising. Explain why this may happen.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter26: Factor Markets: With Emphasis On The Labor Market
Section: Chapter Questions
Problem 5WNG
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It is easy to conclude that when hiring workers in the short run whose marginal
productivity rises, the average product of labor will rise as well. However, if workers
productivity declines, average product of labor may still be rising. Explain why this may
happen.
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