Explain how it is possible for marginal product to fall while average product is rising?
What will be an ideal response?
Average product can rise even if marginal product is falling as long as the marginal product is higher than the average product.
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All of the following might create problems from financial liberalization in emerging countries EXCEPT
A) ineffective screening of borrowers. B) limits on risk-taking. C) lax government supervision of banks. D) lenders failure to monitor borrowers.
The demand curve for investment depicts:
a. an inverse relationship between interest rate and aggregate demand. b. an inverse relationship between interest rate and investment c. an inverse relationship between price level and real GDP. d. a direct relationship between interest rate and quantity of money. e. a direct relationship between aggregate demand and real GDP.