Which one of the following statements is correct?
A)When marginal product is increasing,average product is decreasing.
B)When average product is less than zero,marginal product is positive.
C)When marginal product is increasing and greater than average product,average product is increasing.
D)When marginal product is zero,total product is at its minimum.
E)When average product exceeds marginal product,marginal product is increasing.

Question

Quizplus · Accepted Answer

When marginal product is increasing and greater than average product, it means that the additional unit of input is adding more output than the average, causing the overall average product to increase. Therefore, statement (C) is correct. None of the other statements are true in general.

Which One of the Following Statements Is Correct