Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor.

-Refer to Figure 7-1.To the left of point B:
A)marginal product is rising but average product is falling.
B)marginal product is rising and is above the average product.
C)marginal product is falling but average product is rising.
D)total product is increasing at a decreasing rate.

Question

Use the following figure to answer the questions : Figure 7-1 shows the total product curve for different levels of a variable input,labor.

-Refer to Figure 7-1.To the left of point B:
A)marginal product is rising but average product is falling. 
B)marginal product is rising and is above the average product. 
C)marginal product is falling but average product is rising. 
D)total product is increasing at a decreasing rate.

Quizplus · Accepted Answer

To the left of point B, the marginal product is rising and because it is above the average product, it pulls the average product up, indicating an increase in efficiency per unit of input.

Use the Following Figure to Answer the Questions : Figure