Choose the correct statements considering the relationship between marginal product and average product.

(A) Average product and marginal product curve are 'U'shaped.

(B) Average product and marginal product curve are inverse 'U'shaped.

(C) When the average product increases, the marginal product is greater than the average product.

(D) When the average product decreases, the marginal product is less than the average product.

Choose the correct answer from the options given below:

Option 1 -> Incorrect because statement (A) is false - the curves are inverse 'U' shaped, not 'U' shaped.

Option 2 -> Incorrect because statement (A) is false - the curves are inverse 'U' shaped, not 'U' shaped.

Option 3 -> Incorrect because statement (A) is false - the curves are inverse 'U' shaped, not 'U' shaped.

Option 4 -> Includes statements (B), (C), and (D) which are all correct regarding the MP-AP relationship.

Hence, Option 4: (B), (C) and (D) only -> Statement (B) is correct as both MP and AP curves are inverse 'U' shaped (rising initially, reaching maximum, then declining due to law of diminishing returns). Statement (C) is correct because when marginal product exceeds average product, it pulls the average upward, causing AP to increase. Statement (D) is correct because when marginal product is below average product, it pulls the average downward, causing AP to decrease. Statement (A) is incorrect as the curves are inverse 'U' shaped, not 'U' shaped. -> correct