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

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsProduction and cost1 Mark
Question
Why MP curve lies above AP curve and eventually cuts AP at its maximum point?
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Answer

Both AP and MP are derived from TP, while AP is per unit TP, MP is change in TP. At the initial stages, variable factors are more efficient as a result, MP increases at a rapid rate, hence MP lies above AP and cuts AP at its maximum point when diminishing returns start operating.

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