Consider a firm in the short run.If AP = MP and both are positive,then total product
A)is decreasing as extra units of the variable factor are employed.
B)is increasing as extra units of the variable factor are employed.
C)is at a maximum.
D)is at its minimum.
E)may be either increasing or decreasing as extra units of the variable factor are employed.

Question

Quizplus · Accepted Answer

When average product (AP) equals marginal product (MP) and both are positive, it indicates that total product is increasing, as each additional unit of the variable factor adds positively to the total output.

Consider a Firm in the Short Run