When the Marginal Product Curve Is Above the Average Product

question 279

Multiple Choice

When the marginal product curve is above the average product curve, ________ as output increases.

• A) average product must decrease
• B) average product must increase
• C) marginal product must decrease
• D) marginal product must increase

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Definitions:

Adaptive Organisations

Organizations that are able to change and evolve in response to changes in the market, technology, or external environment.

Growth Strategies

Growth strategies involve expansion of the organisation’s current operations.

Organic Designs

Organizational structures that are flexible, decentralized, and characterized by open communication channels.

Organisational Design

The process of shaping an organization's structure and roles to align with its objectives and the external environment.