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WAEC Economics 2009 Question 20

Question 20

Theory of Production

The relationship between Marginal Product (MP) and Average Product (AP) is such that they are equal when

  1. A.Average Product is maximum
  2. B.Average Product is minimum
  3. C.Marginal Product is maximum
  4. D.Marginal Product is increasing.
Show the answer and explanation

Answer: A (Average Product is maximum)

Explanation

The MP curve cuts the AP curve at the highest point of AP.