If the contribution to output of an additional unit of the variable input exceeds the average contribution of the variable inputs used
A)The average contribution must rise
B)The average contribution must fall
C)The total product will begin to decline
D)The average product will be at its minimum

Question

Quizplus · Accepted Answer

When the contribution to output of an additional unit of the variable input exceeds the average contribution of the variable inputs used, it means that the marginal product is greater than the average product. This implies that the average product will rise as the additional unit of the variable input increases, leading to an increase in the overall output. Therefore, the correct option is A, that the average contribution must rise.

If the Contribution to Output of an Additional Unit of the Variable