Question : When the average product of an input is at its maximum then:
(AP = Average product)
(MP = Marginal product)
Option 1: AP = 0
Option 2: AP = MP
Option 3: AP > MP
Option 4: AP < MP
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Correct Answer: AP = MP
Solution : The correct option is AP = MP .
The point where MP intersects AP is also where AP is at its greatest. When MP drops below AP, AP ceases to increase and instead begins to decrease. Consequently, it is true to say that AP is at its highest when MP and AP are both equal.
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