Q.

When average product of an input is at its maximum then :........
note:(AP= Average product) (MP= Marginal product.)

A. AP > MP
B. AP < MP
C. AP = 0
D. AP = MP
Answer» D. AP = MP
Explanation: 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 maxi-mum. 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.
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