The above diagram suggests that:

Question

Quizplus · Accepted Answer

When the marginal product is above the average product, it means the average product is increasing. This is shown in the diagram where the marginal product curve is above the average product curve in the region where the average product curve is rising. Therefore, option B is the correct answer. Option A is incorrect because when the marginal product is zero, the total product is at a maximum, not at a minimum. Option C is incorrect because when marginal product is below average product, average product is decreasing, not rising. Option D is incorrect because marginal product and average product can be at their maximum at different levels of total product.

The Above Diagram Suggests That