Mock Q on Econ w/ Twisted answer

CFA Level I
#1

In the SR, the Average Product of labor:

a) is increasing when the total product of labor is increasin

b) is at maximum where it intersects the Marginal product of labor

c) is upward-sloping if the firm is eperiencing diminishing marginal returns to labor

So the answer is B. However, the issue i have with this question is that it could also be A, because the Average Product of labor is also 1st increasing and then decreasing as diminishing marginal returns take effect.

I dont understand why they threw 2 legit answers in there. Anyone got some clarification on this?

#2

#3

So from the range of 1-3 labor units, is AP not increasing?

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#4

Diminishing returns to labor. AP increases for the first few laborers but decreases over time. Yes AP increases between 1 and 2 but from 2 to 10 it decreases. I see your logic but B is the best answer as it happens 100% of the time.

#5

Heard eco questions are ery tuff in CFA mock

#6

Edit: I deleted my original post because it was incorrect.

#7

a) is increasing when the total product of labor is increasin

Answer A is implying it ALWAYS increases when total product of labor is increasing, that is not correct.