Marginal product equals average product a

Economics Dec 07, 2020

Marginal product equals average product

a. when marginal product equals zero.

b. when average product equals zero.

c. at the inflection point of the total product curve.

d. at the maximum value of the marginal product.

e. at the maximum value of the average product.

Expert Solution

The correct option is e. at the maximum value of the average product.

Reason: The marginal product is equal to the average product at the point where the average product is at its peak or is maximum. The intersection point betwixt the marginal product and average product curve also lies at the peak of the curve of the average product.

Example: When the marginal worker productivity is equal to the existing labor productivity, then the average product will not change as it is already at its maximum level.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote