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Production and cost — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost2 Marks
Question
Explain the relationship between AP and MP.
✓

Answer

Relationship between AP and MP is stated below:
  1. AP increases when MP is greater than AP.
  2. AP is maximum when both MP and AP are equal.
  3. AP decreases when MP is less than AP.
  4. AP continues to be positive even when MP is zero or negative.
  5. AP may rise even when MP falls but lies above AP.

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