State whether true or false, and explain.

"If average product is increasing, marginal product must be less than the average product."

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Solution

False.

If AP is increasing, MP must be greater than AP. The increase in total product due to the last unit of input has to be greater than the average product. That is the only way to pull the average higher.

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State whether true or false, and explain.

"If marginal product is negative, average product must be negative."

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"Whenever marginal product is equal to average product, total product is at its maximum."

State whether true or false, and explain.

"If total product is increasing, marginal product must also be increasing."

Giving reasons, state whether the following statements are true or false:
(i) Average product will increase only when marginal product increases.
(ii) Under diminishing returns to a factor, total product continues to increase until marginal product reaches zero.

Q. Write True or False with a reason.
Fall in marginal product must lead to a fall in average product as well.

State whether true or false, and explain. "If average product is increasing, marginal product must be less than the average product."

False. If AP is increasing, MP must be greater than AP. The increase in total product due to the last unit of input has to be greater than the average product. That is the only way to pull the average higher.

State whether true or false, and explain.

"If average product is increasing, marginal product must be less than the average product."

False.

If AP is increasing, MP must be greater than AP. The increase in total product due to the last unit of input has to be greater than the average product. That is the only way to pull the average higher.