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When average product of an input is at its maximum then :
(AP= Average product)
(MP= Marginal product)
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- AP = 0
- AP = MP
- AP > MP
- AP < MP
- AP = 0
Correct Option: B
There is a close relationship between marginal product and average product because both are derived from total product. When marginal product is equal to average product, the average product is at its maximum. In the short-run production function, since marginal product starts off as greater than average product and then falls below average product, we can assume that at the “cross-over point,” when MP = AP, AP is at its maximum.