Question

When MP cuts AP at its highest print​

Answer 1

Rate of MP is greater than the Rate of AP, so while increasing it goes above it. Also, It's rate of falling is greater than AP ao it starts falling before AP starts falling cutting AP from above.

Answer 2

In the law of variable proportions, when MP cuts AP at its highest point, stage 1 (stage of increasing returns) ends and stage 2( stage of diminishing returns) begins.

In this second stage, both AP and MP are diminishing but are positive. TP goes on increasing but at a diminishing rate. This is most important stage for producers.