Which one of the following statements is true?
A)The highest value of average product occurs where average product is greater than marginal product.
B)When the average product curve is rising,marginal product is less than average product.
C)When the average product curve is falling,marginal product is greater than average product.
D)The maximum total product occurs at minimum marginal product.
E)The highest value of average product occurs where average product equals marginal product.

Question

Quizplus · Accepted Answer

The highest value of average product occurs where average product equals marginal product. This is because when marginal product is greater than average product, it pulls the average product up and when marginal product is less than average product, it brings the average product down. Therefore, the point where the two are equal is the peak of the average product curve.

Which One of the Following Statements Is True