Which of the following is not true about relationship between average product and marginal product?

CA Foundation · Business Economics · PYQS · May 2025
Which of the following is not true about relationship between average product and marginal product?
(A) A. When average product rises as a result of an increase in the quantity of variable input marginal product is more than the average product.
(B) B. When average product is maximum, marginal product is equal to average product.
(C) C. When average product falls, marginal product is less than the average product.
(D) D. When average product is negative, marginal product becomes zero.

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. When average product is negative, marginal product becomes zero.

Topics: Theory of Production and Cost

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic