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JAMB Economics 1979 Question 29

Question 29

Theory of Production

When the average physical product curve is rising, the marginal physical product is

  1. A.below it
  2. B.above it
  3. C.falling
  4. D.zero
  5. E.none of the above.
Show the answer and explanation

Answer: B (above it)

Explanation

An average rises only when the marginal value added is greater than it, so MP is above a rising AP.