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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost6 Marks
Question
Explain the relationship between Marginal product and Average product.
OR
State the relation between Marginal product and average product. Use diagram.
✓

Answer

  1. Average Product increases as long as Marginal Product (MP) > Average Product (AP). Alternatively, when MP > AP, AP rises.
  2. Average Product is maximum and constant when Average Product (AP) = Marginal Product (MP). Alternatively, when AP = MP, AP is maximum.
  3. Average Product falls when Marginal Product < Average product.
  4. Marginal Product can be zero and negative but Average product is never zero.

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