Production and cost — Economics STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost1 Mark
Question
Justify the statement 'TP increases only when MP increases'.
✓
Answer
Above statement is false, MP is the rate of change in TP. Hence when MP rises, TP rises at a rising rate, however when MP falls but remains positive, TP will still rise, though at a diminishing rate.
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