Assume a company is at a point in production at which marginal product is above average product. Which of the following must be true?
A)Diminishing marginal product must not have set in yet.
B)Marginal product must be rising.
C)Average product must be rising.
D)All of these are correct.

Question

Quizplus · Accepted Answer

When marginal product is above average product, it means that the additional output from one more unit of input is higher than the average output per unit of input so far. This causes the average product to increase because the marginal product is pulling the average upwards.

Assume a Company Is at a Point in Production at Which