When the marginal product curve lies below the average product curve,
A)The average product curve must be falling
B)The total product curve must be falling
C)The average product curve must be rising
D)The marginal product curve must be rising

Question

Quizplus · Accepted Answer

When the marginal product curve lies below the average product curve, it indicates that each additional unit of input is adding less to output than the previous unit. As a result, the average product curve will be falling. The total product curve may or may not be falling depending on the extent to which the marginal product curve has decreased. The marginal product curve will generally be decreasing, indicating diminishing returns to the variable factor of production.

When the Marginal Product Curve Lies Below the Average Product