The average product is the greatest in the short run when the A) marginal product is greater than the average product. B) marginal product is maximized. C) total product is maximized. O D) marginal product is equal to zero. E) marginal product is equal to the average product.

The average product is the greatest in the short run when the A) marginal product is greater than the average product. B) marginal product is maximized. C) total product is maximized. O D) marginal product is equal to zero. E) marginal product is equal to the average product.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 7P

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Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

The average product is the greatest in the short run when the
A) marginal product is greater than the average product.
B) marginal product is maximized.
C) total product is maximized.
O D) marginal product is equal to zero.
E) marginal product is equal to the average product.

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