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

If 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 of the variable input is greater than the average product. This will cause the average product to rise, as the overall output is increasing at a faster rate than the amount of input used, leading to a higher contribution per unit of input. Therefore, choice A is the best answer.

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