Which of the following statements is true?
A) If average product equals marginal product, average product decreases.
B) If marginal product equals average product, average product is a maximum.
C) If marginal product equals average product, marginal product is a maximum.
D) If marginal product exceeds average product, marginal product increases.

Question

Quizplus · Accepted Answer

The statement "If marginal product equals average product, average product is a maximum" is true. This is because the average product reaches its maximum when the marginal product is equal to it. As soon as the marginal product starts to decrease, the average product also starts to decrease. Thus, at the point where both are equal, the average product is at its highest level.

Which of the Following Statements Is True