When the average product is decreasing, marginal product:
A) equals average product.
B) is increasing.
C) exceeds average product.
D) is decreasing.
E) is less than average product.

Question

Quizplus · Accepted Answer

When the average product is decreasing, it means that the addition of more units of the variable input is contributing less to total output than the average of the previous units. This implies that the marginal product (the output from the additional unit of input) is less than the average product at that point.

When the Average Product Is Decreasing, Marginal Product