Consider a firm in the short run.If the AP curve is rising,then the MP curve
A)must lie above the average-product curve over this range and must also be rising.
B)must lie above the average-product curve over this range.
C)can be either above or below the average-product curve,although it must be rising over the entire range.
D)must lie below the average-product curve over this range.
E)must be falling.

Question

Quizplus · Accepted Answer

When the average product (AP) curve is rising, the marginal product (MP) must be above the average product, as MP pulls the AP upwards.

Consider a Firm in the Short Run