Advertisements
Advertisements
Question
How does the average product behave when marginal product is greater than the average product?
Very Short Answer
Advertisements
Solution
When the marginal product (MP) is greater than the average product (AP), the average product rises. This happens because the additional output produced by the new unit of input is more than the average, pulling the average upwards.
shaalaa.com
Is there an error in this question or solution?
