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

Question

Quizplus · Accepted Answer

When AP = MP and both are positive, it means that adding more units of the variable factor is increasing the total product. Therefore, the total product is increasing as extra units of the variable factor are employed.

Consider a Firm in the Short Run