Asked by
Courtney Riggs
on Dec 19, 2024
Verified
At the point where diminishing marginal returns of an input sets in, the
A) average product starts to decrease.
B) marginal product starts to decrease.
C) total product starts to decrease.
D) average product exceeds the marginal product.
Marginal Product
The increase in output resulting from a one-unit increase in the use of a particular input, while holding other inputs constant.
Average Product
The output produced, on average, by each unit of a variable input, such as labor or capital, in the production process.
Total Product
Total product refers to the total quantity of output that a firm produces over a given period, typically in relation to varying levels of input.
- Identify the point where marginal product equals average product.
Verified Answer
HS
Learning Objectives
- Identify the point where marginal product equals average product.