When the average product is maximum the marginal product MP is?

When the average product is maximum the marginal product MP is?

When average product is maximum, marginal product will be equal to average product.

What happens when average product is at its maximum?

When the average product curve is at its maximum, AP is equal to the marginal product (MP).

What is the relationship between marginal product MP and average product AP )?

Relationship between Marginal Product and Average Product The marginal product (MP) and average product (AP) initially increase and then decrease due to the operation of the Law of Diminishing Marginal Returns. As long as MP is higher than AP, AP increases.

At which point is average product AP at its maximum?

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marginal product
The maximum average product is equal to the marginal product. Simply put, the maximum point of the average product curve is also a point on the marginal product curve, a point where both of these curves intersect. When the average product falls, the marginal product is less than the average product.

What is the relation between AP and MP when AP is maximum?

AP increases as long as MP is greater than AP. Till the point p, AP is at maximum.

What happens to the average product AP when the marginal product is below the average product?

If marginal product is less than average product, then average product declines. If marginal product is greater than average product, then average product rises. If the marginal is less than the average, then the average declines.

When AP is maximum MP is greater than AP True or false?

Answer: It happens because when AP rises, MP is more than AP. When AP falls, MP is less than AP. So, it is only when AP is constant and at its maximum point that MP is equal to AP.

What is the relationship between total product and average product?

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It refers to the total amount of output that a firm produces within a given period, utilising given inputs. It is output per unit of inputs of variable factors. Average Product (AP)= Total Product (TP)/ Labour (L).

When average product increases marginal product is?

Marginal product always rises when average product is increasing. When marginal product is less than average product, average product falls. Average Product falls only when marginal product is less than average product.

When average product of a factor rises the marginal product of the factor will be?

Marginal product can fall when average product is increasing as long as marginal product is more than average product. In Fig. 5.5, it happens from point G to E.

When AP is maximum Which of the following statement is true?

When AP is at its maximum, the MP and the AP are equal, and the MP curve, generally, intersects the AP curve from above.

When total product is maximum marginal product is also maximum True or false?

Total product is maximized when the marginal product is zero. True. The point at which the marginal product is zero is the point at which the total…

What is the relationship between marginal product and average product?

Just like the relationship between marginal product and total product, the connection between this two is mentioned below. Marginal product remains above an average product when AP rises. Similarly, MP remains below AP, in case AP declines. Average product and marginal product become equal at the maximum AP.

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What happens when the average product is at a maximum?

If Average Product is at a maximum, Marginal product must then equal that average, or the average would have changed. Similarly, when Average Cost is at a minimum (i.e. when Average Product is at a maximum), then Marginal C…

What do you mean by average product (AP)?

It refers to the total amount of output that a firm produces within a given period, utilising given inputs. It is output per unit of inputs of variable factors. Average Product (AP)= Total Product (TP)/ Labour (L). It denotes the addition of variable factor to total product.

Can the average product of labor be at a maximum?

Thus, the average product of labor cannot be at a maximum unless the average product of labor is equal to the marginal product of labor so at any maximum we must have that they are equal. What is marginal product?