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As long as MP (marginal product) remains higher than the average product (AP), the average product
Question

As long as MP (marginal product) remains higher than the average product (AP), the average product

A.

continues to fall

B.

continues to rise

C.

remains constant

D.

falls with diminishing rate

Correct option is B

The correct answer is (b) continues to rise

As long as MP (marginal product) remains higher than the average product (AP), the average product continues to rise.

Information Booster: 

  • Marginal product (MP) is the change in output that results from adding one more unit of an input to production.
  • It's also known as marginal physical product. MP is a key concept in economics and is used to analyze short-run production and the law of supply.
  • It helps companies determine how much to increase production by adding more units of labor or other inputs
  • Average product (AP) is a measurement of the average output produced per unit of input. It's calculated by dividing the total product (TP) by the quantity of input (Q)

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