When the marginal product curve is above the average product curve, ________ as output increases.
A) average product must decrease
B) average product must increase
C) marginal product must decrease
D) marginal product must increase

Question

Quizplus · Accepted Answer

When the marginal product curve is above the average product curve, the average product must increase as output increases. This is because the marginal product is the additional output produced by the last unit of input, and if the marginal product is greater than the average product, then the average product must be increasing.

When the Marginal Product Curve Is Above the Average Product