Economy, asked by maanu16, 10 months ago

Reason for rise in both AP and MP curve is _______

(a) under utilization of the fixed factor
(b) under utilization of the variable
(c) over utilization of the fixed factor
(d) over utilization of the variable ​

Answers

Answered by singhputul2003
0

Answer is (c) over utilization of the fixed factor

Answered by hotelcalifornia
0

Option (C) Over utilization of the fixed factor is the reason for rise in both AP and MP curve.

Explanation:

AP stands for Average Production

MP stands for Marginal Production

  • First AP and MP raise at the increasing level.
  • When TP reduces AP and MP declines.
  • Fixed cost remains constant up to a certain level of output.
  • Over certain level of output both variable cost and fixed cost increases.
  • The main reason is the law of diminishing utility.

If fixed cost and variable cost are wrongly applied total cost of the production have been increased.

Similar questions