Which of the following statements is true?
A) The marginal and average product curves intersect at the maximum level of output.
B) The marginal product curve always has a positive slope.
C) At every output level the marginal product curve lies above the average product curve.
D) The marginal product and average product curves intersect when average product is at its maximum.

Question

Quizplus · Accepted Answer

The marginal product and average product curves intersect when the average product reaches its maximum. This is because, at the point of intersection, adding more units of the variable input increases total output at a decreasing rate, which causes the average product to start declining.

Which of the Following Statements Is True