CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

At the existing level of output, MP = AP = 10 units. Would AP be equal to MP when production is increased and law of variable proportions is in operation?



Your Answer
A

Yes

Correct Answer
B

No


Solution

The correct option is A

No


No. When production is increased beyond a point where MP = AP (implying AP is at its top), MP and AP should start declining. Fall in MP should be faster than the fall in AP. So that AP > MP.

flag
 Suggest corrections
thumbs-up
 
0 Upvotes


Similar questions
View More



footer-image