Question

The marginal, average, and total product curves encountered by the firm producing in the short run exhibit all of the following relationships except:

• A. When the total product is rising, the average and marginal product may be either rising or falling.
• B. When marginal product is negative, total product and average product are falling.
• C. When average product is at a maximum, marginal product equals average product, and total product is rising.
• D. When marginal product is at a maximum, average product equals marginal product, and total product is rising.

Answer 1

The correct option is D

When marginal product is at a maximum, average product equals marginal product, and total product is rising.

When marginal product is at a maximum, average product is less than the marginal product, and the total product is rising.