Assuming that the production function is homogeneous of degree one (constant returns to scale) and Euler's theorem holds, if the Marginal Product of Labour (MPL) is greater than the Average Product of Labour (APL), then:

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Economics · Microeconomics

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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MPK (Marginal Product of Capital) will be negative.

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Answer 1

MPL will be negative.

Answer 2

MPK (Marginal Product of Capital) will be zero.

Answer 3

MPK (Marginal Product of Capital) will be negative.

Answer 4

MPL and MPK will both be negative.

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