Answer to Question #100495 in Microeconomics for Hasret Doğan

Question

Determine each of the following statements as true or false and explaining reasoning.
A. If the average product of an input is increasing, then this implies that the input's marginal product is smaller than its average product.
B. If the total product is increasing, then this implies that the marginal product of the inputs is also increasing.
C. If the marginal product of an input is negative, then this implies that the average product of the input is also negative.
D. If the average product of an input is positive, then this implies that the total product is increasing.

Answer 1

(A). If the average product of an input is increasing, then this implies that the marginal product is smaller than its average product.

False:  Average product increase because the marginal exceeds the average product

(B). If the total product is increasing, then this implies that the marginal product of the inputs is also increasing.

True: The marginal product is the addition to Total Product when an extra factor input is used. Therefore increase in marginal product will increase the total product.

 (C). If the marginal product of an input is negative, then this implies that the average product of the input is also negative.

True: An increase in the variable input causes total product to fall.

(D). If the average product of an input is positive, then this implies that the total product is increasing.

True: when there is positive and increasing return, total product increases at increasing rate