2 a True or False Explain In the short run total product wil

2. a. True or False, Explain: In the short run, total product will decline when the marginal product of labor begins to diminish.

2. b. True or False, Explain: In the short run, if the marginal product of labor is decreasing then the average product of labor must be decreasing.

Solution

When TP increases at decreasing rate then marginal product starts to decline. That is even though TP is increasing but not at the rate the inputs are being increased then the marginal product will fall.

If the marginal product of labor is decreasing then the average product of labor must be decreasing. AP is the productivity per units of the variable factor and Mp is the addition output per unit of additional factor input.