When the marginal product curve lies above the average product curve, then average product is rising.

Question

Quizplus · Accepted Answer

When the marginal product curve is above the average product curve, it means that each additional unit of input is producing more output than the average. This pulls the average up, causing it to rise. When the marginal product curve lies above the average product curve, it means that each additional unit of input is providing a higher output than the average. This leads to an increase in the overall output, causing the average product to rise.

When the Marginal Product Curve Lies Above the Average Product