As long as AP is rising, .

MP is negative

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MP is zero

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MP > AP

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MP < AP

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Solution

The correct option is C MP > AP
As long as AP is rising, MP is greater than AP. This happens because the average can rise only if the marginal increase in greater than the average itself

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State whether the following are true or false. Give reasons:

(a) When $A D > A S,$ there will be rise in inventories.

(b) When $A D < A S,$ there will be fall in inventories

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