Question #161948

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


Expert's answer

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.


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