Giving reasons, state whether the following statements are true of false : (i) AP will increase only when MP increases. (ii) Under diminishing returns
Giving reasons, state whether the following statements are true of false :
(i) AP will increase only when MP increases.
(ii) Under diminishing returns to a factor, TP continue to increase till MP reaches zero.
5 views
1 Answers
(i) False. AP increases as long as MP is greater than AP.
(ii) True. TP falls only when MP becomes negative.
5 views
Answered