Question

Which one of the following figures represents relationship between average product and marginal product?
(Q is quantity of output and N is unit of variable factor)
Select the correct answer from the options given below-

• A. Figure $1$
• B. Figure $2$
• C. Figure $3$
• D. Figure $4$

Answer 1

The correct option is C Figure $3$

The marginal product initially begins above the average product and then intersects the average product curve at its maximum point, both curves must have a "reverse U shape as they are mirror images of the respective cost curves". The only figure correctly illustrating this is figure 3. The MP doesn't intersect the AP at its maximum in figure 4 and thus this diagram is incorrect.