All else constant, an increase in productivity has the effect of causi

All else constant, an increase in productivity has the effect of causing:

A) the marginal product of labor to increase and no effect on the average product of labor.
B) the average product of labor to increase and no effect on the marginal product of labor.
C) the marginal product of labor to increase and the average product of labor to decrease.
D) both the marginal and average product of labor to increase.

 

ANSWER

D

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