Question

If Average Production is decreasing, then what will be the effect on Marginal Production?

• A. It will have a positive slope
• B. IIt will be more than Average Production
• C. It will be less than Average Production
• D. It will be the same as Average Production

Answer 1

Answer:

C. It will be less than Average Production

• The correct answer is "It will be less than Average Production". The marginal product and average product have a close relationship.

• The marginal product will alter the average product with each extra unit, and vice versa. The marginal product will decrease if the average product falls or drops