Which of the following is true of marginal product?
A)The firm should produce where marginal product is greatest.
B)The firm should produce where marginal product is increasing.
C)When marginal product is falling, total product is falling.
D)The firm should produce where marginal product is zero.
E)When marginal product is increasing, total product is increasing by increasing amounts.

Question

Quizplus · Accepted Answer

When marginal product is increasing, it means that each additional unit of input is contributing more to the total product than the previous unit, thus increasing the total product by increasing amounts.

Which of the Following Is True of Marginal Product