If marginal product is greater than average product, then
A) average product must be decreasing.
B) marginal product must be decreasing.
C) marginal product must be increasing.
D) marginal product could either be increasing or decreasing.

Question

Quizplus · Accepted Answer

When the marginal product is greater than the average product, it means that the addition of the last unit of input is contributing more to the total output than the average of all units before it. This situation does not specify whether the marginal product itself is increasing or decreasing; it only indicates its position relative to the average product.

If Marginal Product Is Greater Than Average Product, Then