The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when

  • A average product is maximum
  • B Average product is minimum
  • C Marginal Product is maximum
  • D Marginal Product is increasing
waec 2009economics

The correct answer is D. Marginal Product is increasing

The marginal product is the additional output produced by one more unit of input, while the average product is the total output divided by the total input.

When the marginal product is greater than the average product, the average product is increasing.

When the marginal product is less than the average product, the average product is decreasing.

But, when the marginal product and the average product are equal, then the average product is at its maximum.

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