The average product curve
A) initially falls then rises.
B) rises as average variable cost increases.
C) initially rises and then falls.
D) shows how productivity changes as output changes.
E) intersects the marginal cost curve when the average product curve is at its maximum.

Question

Quizplus · Accepted Answer

The average product curve initially rises as more inputs are added, but eventually reaches a maximum and then starts to fall as diminishing marginal returns set in. Therefore, it initially rises and then falls.

The Average Product Curve