Micro

Production & Costs

Medium

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........

Fall.

Rise.

Constant.

Zero.

✅ Correct Option: 2

Option 2: Rise. -> When Marginal Product (MP) is greater than Average Product (AP), each additional unit of input contributes more to total output than the current average. This pulls the average upward, causing the Average Product to rise. This relationship continues until MP equals AP, at which point AP reaches its maximum. After that point, if MP falls below AP, the Average Product begins to decline. This is a fundamental principle in production theory that explains the inverse 'U'-shaped curve of Average Product. -> correct

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2025: 21 May Shift 1

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2025: 28 May Shift 2

In the short run, some of the factors of production of a firm ......

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What does the rectangle OVBq₀ depicts in the given figure?

2025: 22 May Shift 2

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2025: 28 May Shift 1

In the production of clothes, cotton is defined as................

capital
Input.
Final Output.
Intermediate output

In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........

Solution

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