If,for a particular short-run production,we observe that marginal product is decreasing we can conclude that average product is decreasing as well.

Question

Quizplus · Accepted Answer

Marginal product decreasing implies that the addition to total output from one more unit of input is falling, but the average product can still be increasing if the marginal product is above the average product. The average product only starts to decrease when the marginal product falls below the average product.

If,for a Particular Short-Run Production,we Observe That Marginal Product Is