In the short run,the firm's product curves show
A)AP is at its minimum when MP = AP.
B)TP is at its maximum when MP is at its maximum.
C)TP begins to decrease when AP begins to decrease.
D)when MP

Question

In the short run,the firm's product curves show
A)AP is at its minimum when MP = AP.
B)TP is at its maximum when MP is at its maximum.
C)TP begins to decrease when AP begins to decrease.
D)when MP < AP,AP is increasing.
E)when the MP curve cuts the AP curve from above,the AP curve begins to fall.

Quizplus · Accepted Answer

When the marginal product (MP) curve cuts the average product (AP) curve from above, it indicates that MP is decreasing and has fallen below AP, causing the AP to start decreasing.

In the Short Run,the Firm's Product Curves Show