What is the relationship between marginal product and average product?
What will be an ideal response?
When marginal product is greater than average product, average product rises. When marginal product is lower than average product, average product falls. When marginal product is equal to average product, average product is at its maximum.
Economics
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The long-run aggregate supply curve is vertical at the level of real output that corresponds to the natural rate of employment.
a. true b. false
Economics
Starting from a balanced budget, which of the following would NOT cause a deficit?
A) A decrease in taxes B) An increase in spending of goods and services C) An increase in transfer payments D) A 50 percent increase in spending accompanied by a 40 percent increase in taxes E) None of the above.
Economics