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

When marginal product equals average product, the average product is at its maximum point. This is because the average product curve is at its peak when it intersects the marginal product curve.

Which of the Following Statements Is TRUE