In the short run,the firm's product curves show
A)AP is at its minimum when MP = AP.
B)when MP

Question

In the short run,the firm's product curves show
A)AP is at its minimum when MP = AP.
B)when MP < AP,AP is increasing.
C)TP is at its maximum when MP is at its maximum.
D)TP begins to decrease when AP begins to decrease.
E)when the MP curve cuts the AP curve from above,the AP curve begins to fall.

Quizplus · Accepted Answer

When the marginal product (MP) curve cuts the average product (AP) curve from above, it indicates that the AP is at its maximum and will begin to fall as MP continues to decrease.

In the Short Run,the Firm's Product Curves Show