Asked by
Athziri Rodriguez
on Dec 04, 2024
Verified
What describes the graphical relationship between average product and marginal product?
A) Average product cuts marginal product from above, at the maximum point of marginal product.
B) Average product cuts marginal product from below, at the maximum point of marginal product.
C) Marginal product cuts average product from above, at the maximum point of average product.
D) Marginal product cuts average product from below, at the maximum point of average product.
E) Average and marginal product do not intersect.
Average Product
The output per unit of input, such as labor or capital, calculated by dividing total output by the total quantity of the input.
Marginal Product
The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.
- Understand the relationship and differences between average product and marginal product of labor.
Verified Answer
CV
Learning Objectives
- Understand the relationship and differences between average product and marginal product of labor.