Which of the following statements best describes the relationship between average product and marginal product?
A. marginal product and average product curves rise and fall together B. marginal product equals average product at the minimum point of the latter C. average product curve will rise as long as marginal product is greater than average product C. marginal product equals average product at the maximum point of the former
Correct Answer: C
Explanation
As long as the Marginal Product of labour is greater than the Average Product, the AP continues to rise. At the maximum of AP, AP and MP are equal.
