Answer to Question #161948 in Microeconomics for Musbahu

Question

what is the relationship between Average product and marginal product under constant return to scale

Answer 1

There is a following relationship between the average product and the marginal product: when average product is increasing, the marginal product is also increasing and lies above the average product; at the maximum of average product, marginal and average product equals each other; when the average product is decreasing, the marginal product is also decreasing and lies below the average product.