Which of the following is true of the typical relationship between marginal product (MP)and average product (AP)?
A)If MP is greater than AP, then AP is falling.
B)The AP curve intersects the MP curve at minimum MP.
C)The MP curve intersects the AP curve at maximum AP.
D)If MP is less than AP, then AP is increasing.

Question

Quizplus · Accepted Answer

The MP curve intersects the AP curve at maximum AP. This is because when MP is higher than AP, it pulls the AP curve upwards, causing it to increase. When MP is lower than AP, it pulls the AP curve downwards, causing it to decrease. The intersection occurs at the point where MP equals AP, where the AP curve is neither rising nor falling, which is the point of maximum AP.

Which of the Following Is True of the Typical Relationship