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Production Function: TP, MP and AP · Question 20 of 62

Question 20

MediumOriginal question

Assertion (A): When MP is falling, AP must also be falling.

Reason (R): AP falls only when MP is below AP.

Options for question 20

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. A is false: MP can fall while it is still above AP, and then AP does not fall. In the schedule, MP falls from 15 to 13 at the 4th worker, yet AP stays at 13.

  2. R is true: what matters is whether MP is above or below AP, not whether MP is rising.

Concept
Falling MP does not mean falling AP
Typical time
70 s
Your time
—
The rule this testsTotal, marginal and average product
Practise this chapter →

Ten questions from Production Function: TP, MP and AP, at your own pace.

Practise this chapter →

Ten questions from Production Function: TP, MP and AP, at your own pace.