define shape of AP curve
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The AP curve is inverted-U shaped. It rises (due to increasing marginal returns), reaches its maximum, and then begins to fall (due to decreasing marginal returns). The AP curve slopes upwards as long as the MP curve is above it. AP reaches its maximum point when AP=MP.
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ᴀɴꜱᴡᴇʀ:-
ɪᴛ ɪꜱ ɪɴᴠᴇʀᴛᴇᴅ-ᴜ ꜱʜᴀᴘᴇᴅ. ɪᴛ ʀɪꜱᴇꜱ (ᴅᴜᴇ ᴛᴏ ɪɴᴄʀᴇᴀꜱɪɴɢ ᴍᴀʀɢɪɴᴀʟ ʀᴇᴛᴜʀɴꜱ), ʀᴇᴀᴄʜᴇꜱ ɪᴛ ᴍᴀxɪᴍᴜᴍ, ᴀɴᴅ ᴛʜᴇɴ ʙᴇɢɪɴ ᴛᴏ ꜰᴀʟʟꜱ (ᴅᴜᴇ ᴛᴏ ᴅᴇᴄʀᴇᴀꜱɪɴɢ ᴍᴀʀɢɪɴᴀʟ ʀᴇᴛᴜʀɴꜱ). ᴛʜᴇ ᴀᴘ ᴄᴜʀᴠᴇ ꜱʟᴏᴠᴇꜱ ᴜᴘᴡᴀʀᴅꜱ ᴀꜱ ʟᴏɴɢ ᴀꜱ ᴛʜᴇ ᴍᴘ ᴄᴜʀᴠᴇ ɪꜱ ᴀʙᴏᴠᴇ ɪᴛ. ᴀᴘ ᴄᴜʀᴠᴇ ʀᴇᴀᴄʜᴇꜱ ɪᴛ'ꜱ ᴍᴀxɪᴍᴜᴍ ᴘᴏɪɴᴛ ᴡʜᴇɴ ᴀᴘ=ᴍᴘ.
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