Question

If the marginal productivity of labor is constant for all levels of output, then the average productivity of labor a. is constant. b. equals the marginal product of labor. c. Both a and b d. Either a or b but not both.

Answer 1

Answer: Both A and B

Explanation: You can see in the table below what happens if the marginal productivity of labor is constant for all leves output.

Workers    Productivity    Marginal Productivity       Average Productivity

1                   10 books                                                          10  (10/1)

2                  20 books                10                                      10  (20/2)

3                  30  books               10                                      10 (30/3)

One worker produces 10 books, two workers produce twenty books, three workers produce 30 books so the marginal productivity is 10 books which means that each worker produces 10 new units of output (it is constant because it always add the same quantity). The average Productivity is also constant; Average Productivity means how much each worker produces in average so it  is the productivity divided by the number of workers. (it is constant because it is always ten). In the table you can see that Marginal productivity equals Average productivity in 10.