Which of the following statements is true?
A) If marginal product equals average product, marginal product is at its maximum.
B) If marginal product equals average product, average product is at its maximum.
C) If marginal product exceeds average product, marginal product increases.
D) If average product equals marginal product, average product decreases.

Question

Quizplus · Accepted Answer

When marginal product equals average product, it means that the average product is at its maximum. This is because the average product increases as long as the marginal product is higher than the average product and starts to decrease when the marginal product falls below the average product.

Which of the Following Statements Is True