-Which of the following is correct about marginal and average products?
A) When the marginal product is increasing, the average product must be increasing.
B) When the marginal product exceeds the average product, the average product must be increasing.
C) When the average product is increasing, the marginal product must be decreasing.
D) When the marginal product is decreasing, the average product must be decreasing.
E) When the marginal product is increasing, the average product must be decreasing.

Question

-Which of the following is correct about marginal and average products?
A) When the marginal product is increasing, the average product must be increasing. 
B) When the marginal product exceeds the average product, the average product must be increasing. 
C) When the average product is increasing, the marginal product must be decreasing. 
D) When the marginal product is decreasing, the average product must be decreasing. 
E) When the marginal product is increasing, the average product must be decreasing.

Quizplus · Accepted Answer

When the marginal product (MP) exceeds the average product (AP), it means the additional output from the last unit of input is higher than the average output per unit of input. This pulls the average product upwards, causing it to increase.

-Which of the Following Is Correct About Marginal and Average