If Average Production is decreasing, then what will be the effect on Marginal Production?

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RRB Group D 26 Aug 2022 Shift 3 Official Paper
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  1. It will have a positive slope 
  2. It will be more than Average Production
  3. It will be less than Average Production
  4. It will be same as Average Production

Answer (Detailed Solution Below)

Option 3 : It will be less than Average Production
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RRB Group D Full Test 1
100 Qs. 100 Marks 90 Mins

Detailed Solution

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The correct answer is "It will be less than Average Production".

Key Points

  • The marginal product and average product have a close relationship.
  • The marginal product will alter the average product with each extra unit, and vice versa. The marginal product will decrease if the average product falls or drops.
  • The marginal product, however, will always be negative or zero and be less than the average product.
  • The marginal and average productivity will be impacted by changes in each unit of output.

Additional Information

  •  When the average product is at its highest value, marginal product equals average product.
  • When average product declines, marginal product does not rise.
  • When the average product is declining, the marginal product will not surpass.
  • The marginal product will fall and the average product will always be less than the marginal product.

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