The average product of labor at point C in(a)is given by the slope of the line OC.To the left of point E in (b)the marginal product is above the average product and the average is increasing;to the right of E the marginal product is below the average product and the average is decreasing. As a result,E represents the point at which the average and marginal products are equal,when the average product reaches its maximum. The average product of labor at point C in (a) is given by the slope of the line OC. To the left of point E in (b) the marginal product is above the average product and the average is increasing; to the right of E the marginal product is below the average product and the average is decreasing. As a result, E represents the point at which the average and marginal products are equal, when the average product reaches its maximum