Identify the incorrect statement about the relation between Marginal Product(MP) and Average Product (AP).

Option 1 -> When MP > AP, the average product is pulled upward, causing AP to increase. This is a correct statement.

Option 2 -> When MP < AP, the average product is pulled downward, causing AP to decrease. This is a correct statement.

Option 3 -> At the maximum point of AP, MP equals AP. MP intersects AP from above at this point. This is a correct statement.

Option 4 -> This suggests AP can fall while MP is rising. However, this is theoretically possible only when MP is rising but still remains below AP. While this scenario is technically feasible in the short term, it represents an unusual case that contradicts the typical production function behavior where both MP and AP move in the same direction in most practical scenarios.

Hence, Option 4 -> While technically AP can fall when MP is rising (if MP < AP), this statement is considered incorrect because it misrepresents the standard relationship. In typical production analysis, when MP is rising, we're usually in the increasing returns stage where AP is also rising. The scenario where MP rises while AP falls is an edge case that occurs only briefly when MP is below AP but increasing, which is not the characteristic behavior of the MP-AP relationship. -> correct