When AP is positive but declining the MP would be _______.
A
rising
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B
equal to AP
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C
falling and lying below AP
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D
none of these
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Solution
The correct option is D falling and lying below AP Marginal Product is the defined as the change in total product resulting from one additional unit of a variable factor. When MP falls below the value of AP, it will have the effect of dragging it down as if you take a lower number and add it to the average and then take a new average, the new average has to be lower than the previous average.