If marginal product is below average product ?
Correct answer: B. The average product will fall
- A. The total product will fall
- B. The average product will fall
- C. Average variable cost will fall
- D. Total revenue will fall
Explanation
When marginal product is below average product, the new unit pulls the average down, just as a score below an average lowers that average. Thus average product falls, even though total product may still be increasing.
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