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Q: If Average Production is decreasing, then what will be the effect on Marginal Production?
  • A. It will be less than Average Production
  • B. It will have a positive slope
  • C. It will be more than Average Production
  • D. It will be the same as Average Production
Correct Answer: Option A - If the average product falls or declines, Marginal product will also decline. Still, the marginal product will always be less than the average product, and the marginal product will be negative or zero. The change in each unit of product or will affect the marginal and average productivity.
A. If the average product falls or declines, Marginal product will also decline. Still, the marginal product will always be less than the average product, and the marginal product will be negative or zero. The change in each unit of product or will affect the marginal and average productivity.

Explanations:

If the average product falls or declines, Marginal product will also decline. Still, the marginal product will always be less than the average product, and the marginal product will be negative or zero. The change in each unit of product or will affect the marginal and average productivity.