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

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.