what happens AP when MP is more than AP
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When AP is rising it is always less than MP and when it is falling it is always greater than MP. MP = AP when AP is at its max. The law of diminishing returns states that as a firm uses more of a variable input without changing the quantity of fixed inputs, the MPof the variable input will eventually decline.
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When AP is rising it is always less than MP and when it is falling it is always greater than MP. MP = AP when AP is at its max. The law of diminishing returns states that as a firm uses more of a variable input without changing the quantity of fixed inputs, the MP of the variable input will eventually decline.
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