The following question are based on the following production function:

-In this production function
A) total, average, and marginal products are all declining.
B) total and average products are rising.
C) total, average, and marginal products are all rising.
D) total product is rising, while average and marginal products are declining.
E) total product is rising, but the behavior of the average and marginal products cannot be determined.

Question

The following question are based on the following production function:
 
-In this production function
A) total, average, and marginal products are all declining. 
B) total and average products are rising. 
C) total, average, and marginal products are all rising. 
D) total product is rising, while average and marginal products are declining. 
E) total product is rising, but the behavior of the average and marginal products cannot be determined.

Quizplus · Accepted Answer

The total product is rising, as shown by the increasing slope of the graph. However, the marginal product starts to decline after reaching its maximum at point B, and the average product starts to decline after reaching its maximum at point C. This indicates that additional units of input beyond point B and C are less and less productive, resulting in a decrease in both marginal and average product. Therefore, choice D is the best answer.

The Following Question Are Based on the Following Production Function