Which of the following is true? Average product:
A)increases or decreases as marginal product decreases or increases.
B)is always less than marginal product.
C)reaches its maximum when it is equal to marginal product.
D)increases or decreases as marginal product increases or decreases.

Question

Quizplus · Accepted Answer

The average product reaches its maximum when it is equal to the marginal product. This occurs because the average product is calculated by dividing the total product by the number of units of input, while the marginal product is the additional amount of output produced by one additional unit of input. When the marginal product is equal to the average product, it means that each additional unit of input is contributing the same amount of output as the previous units, resulting in the highest level of average productivity.

Which of the Following Is True? Average Product