Figure 6A

-At point B in Figure 6A, the MP and AP are equal to each other because:
A)the total product function has reached its maximum.
B)the variable resource is most productive.
C)the slopes of a ray from the origin and of the TP are equal.
D)the fixed resources are no longer productive.

Question

Figure 6A

-At point B in Figure 6A, the MP and AP are equal to each other because:
A)the total product function has reached its maximum. 
B)the variable resource is most productive. 
C)the slopes of a ray from the origin and of the TP are equal. 
D)the fixed resources are no longer productive.

Quizplus · Accepted Answer

At point B, the marginal product (MP) and average product (AP) are equal because the slope of a ray from the origin to the total product (TP) curve at that point is equal to the slope of the TP curve itself. This indicates that the efficiency of resource use is maximized, as both the MP and AP reach their peak at the same level of output.

Figure 6A -At Point B in Figure 6A, the MP and AP