Home
Class 11
ECONOMICS
"Marginal Product cuts the Average Produ...

"Marginal Product cuts the Average Product from its top". Do you agree with the given statement?

Text Solution

Verified by Experts

Yes, I agree with the given statement. It happens because when Average Product (AP) rises, Marginal Product (MP) is more than AP. When AP falls, MP is less than AP. So, MP cuts AP from its top.
Doubtnut Promotions Banner Mobile Dark
|

Topper's Solved these Questions

  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 1|12 Videos
  • DEMAND AND ITS DETERMINANTS

    SANDEEP GARG|Exercise Model test paper 2|12 Videos
  • DEMAND

    SANDEEP GARG|Exercise Unsolved particles|4 Videos
  • ELASTICITY OF DEMAND

    SANDEEP GARG|Exercise Unsolved practicals|79 Videos

Similar Questions

Explore conceptually related problems

Marginal product cuts average product from its top.

"An economy always operates on production possibility frontier and not inside it". Do you agree with the given statement?

A decrease in the spending by the government reduces the income and purchasing power of the people. Do you agree with the given statements ?

"The demand for a commodity always increases whenever the price of other goods rises". Do you agree with the given statement ?

A monopolist firm has full control over the price and demand for this product. Do you agree with the given statement?

The amount of loans offered by the commercial banks are equal to the deposits received by them. Do you agree with the given statement ?

If marginal product rises, average product must also rise.

If marginal product falls, average product must also fall.

Book Keeping is not a part of accounting. Do you agree with the statement?

it pays to advertise'. Do you agree with the statement? Give reasons.