The maximum marginal product corresponds with:

Question

Quizplus · Accepted Answer

The maximum marginal product is achieved when the marginal cost equals the marginal product. At this point, the marginal cost is neither increasing nor decreasing. This means that the average variable cost is at a minimum. Therefore, the correct choice is B. Additionally, at this point, the marginal cost is below the average total cost, but the marginal cost is increasing. This means that the minimum average total cost occurs at a point where the marginal cost intersects the average total cost curve from below (option A is incorrect). Finally, since the maximum marginal product occurs at a point where the marginal cost equals the marginal product, option D, which suggests that the maximum marginal product corresponds with maximum marginal cost, is also incorrect.

The Maximum Marginal Product Corresponds With