AP may continue to rise even when MP starts declining. why?
Dear Student
The Average Product may rise even when the Marginal Product starts declining as long as MP is greater than AP . This is because we must understand that if marginal product is greater than average that means that with each unit input production rises more than the production per unit of input or labour . Hence even if marginal production declines a bit the average product may still rise because the unit of labour adds more production units than per unit production of labour . We can understand this by a diagram :
Regards .
The Average Product may rise even when the Marginal Product starts declining as long as MP is greater than AP . This is because we must understand that if marginal product is greater than average that means that with each unit input production rises more than the production per unit of input or labour . Hence even if marginal production declines a bit the average product may still rise because the unit of labour adds more production units than per unit production of labour . We can understand this by a diagram :
Regards .