-The average product is the greatest in the short run when the
A) total product is maximized.
B) marginal product is equal to zero.
C) marginal product is maximized.
D) marginal product is equal to the average product.
E) marginal product is greater than the average product.

Question

-The average product is the greatest in the short run when the
A) total product is maximized. 
B) marginal product is equal to zero. 
C) marginal product is maximized. 
D) marginal product is equal to the average product. 
E) marginal product is greater than the average product.

Quizplus · Accepted Answer

The average product is greatest in the short run when the marginal product is equal to the average product. This is because at this point, adding one more unit of input will increase the total output at the same rate as the average, indicating the most efficient use of inputs before diminishing returns set in.

-The Average Product Is the Greatest in the Short Run