Correct option is B
The correct answer is (b) continues to rise
As long as MP (marginal product) remains higher than the average product (AP), the average product continues to rise.
Information Booster:
- Marginal product (MP) is the change in output that results from adding one more unit of an input to production.
- It's also known as marginal physical product. MP is a key concept in economics and is used to analyze short-run production and the law of supply.
- It helps companies determine how much to increase production by adding more units of labor or other inputs
- Average product (AP) is a measurement of the average output produced per unit of input. It's calculated by dividing the total product (TP) by the quantity of input (Q)