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 (MP) lies below the average product curve (AP), it means that the additional output produced by each additional unit of input (MP) is less than the total output divided by the total input (AP). This implies that the AP is declining because the MP is pulling it down. Therefore, the correct answer is A. Option B is incorrect because it is possible for the total product curve (TP) to continue rising even when the MP is below the AP. Options C and D are also incorrect because they do not follow from the given information.

When the Marginal Product Curve Lies Below the Average Product