State whether the following statements are true or false. Justify your answer
a) AP rises only when MP rises.
b) TC rises only when MC rises
a) False. See when AP is max AP = MP.
But MP has already achieved its maxima before. Hence bw the maxima of MP till it cuts AP , MP decreases but AP rises.
A graph will make it more clear.
b) False. When MC falls even then TC rises but with a decreasing rate.
But MP has already achieved its maxima before. Hence bw the maxima of MP till it cuts AP , MP decreases but AP rises.
A graph will make it more clear.
b) False. When MC falls even then TC rises but with a decreasing rate.