1273EconomicsMedium
Which of the following is a correct statement about the relationship between average product (AP) and marginal product (MP)?
AIf AP = MP, then total product is at a maximum.
BIf AP is at a maximum, then MP is also,
CIf AP exceeds MP then AP is falling
DIf TP is declining, then AP is negative
Correct answer
C. If AP exceeds MP then AP is falling
Explanation
The correct answer is If AP exceeds MP then AP is falling.