Question

Marginal product equals average product when average product is

A) Falling

B) constant

C) at a maximum

D) at a minimum

E) rising  

Answer 1

Answer

Option C

at a maximum

A marginal product is a change in the total product, and an AP is average of the total product so when a marginal product is increasing the AP also increases and it is a maximum when MP decreases and equal to the AP, an AP is decreasing after MP<AP.