Question

4. When average product (AP) of a factor rises, the marginal product (MP) of the factor will be :
(A) Greater than AP
(B) Equal to AP
(C) Less than AP
(D) Positive and increasing.​

Answer 1

Explanation:

Marginal product remains above an average product when AP rises. Similarly, MP remains below AP, in case AP declines. Average product and marginal product become equal at the maximum AP.