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What is the relationship between MP and AP?


Posted- 2369 days ago
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*When AP increases MP>AP

*When AP decreases MP<AP

*AP is maximum when AP=MP

 

The relationship between MP and AP are as follows;

when marginal product is increasing average product is also increasing but it will be below marginal product

marginal product cuts average product from the top at this point they are equal to eachother

when marginal product decreases average produst also decreases but it will be abobe the marginal product

 

 

AP increases as long as MP is greater than AP( MP>AP)

AP decreases when MP is less than AP(MP<AP)

AP is at maximum when AP=MP

 

The relationship between MP and AP are as follows;

when marginal product is increasing average product is also increasing but it will be below marginal product

marginal product cuts average product from the top at this point they are equal to eachother

when marginal product decreases average produst also decreases but it will be abobe the marginal product