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What happens to average product (AP) when marginal product (MP) is less than AP? AP rises O O AP falls AP remains constant None of these

What happens to average product (AP) when marginal product (MP) is less than AP? AP rises O O AP falls AP remains constant None of these

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 13RQ: What is the difference between a fixed input and a variable input?
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What happens to average product (AP) when marginal product (MP) is less than AP? O AP rises AP falls AP remains constant None of these
Transcribed Image Text:What happens to average product (AP) when marginal product (MP) is less than AP? O AP rises AP falls AP remains constant None of these
Expert Solution
Step 1

Average product is the total product divided by the input unit (labor). 

So, AP = TP/L .

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