Answer :

(a) Equal to AP

AP is the total product (TP) per unit of variable factor employed and MP is the change in TP as a result of an additional variable factor employed. The relationship between AP and MP is determined by the slope of the TP curve. It can be stated as:

• When MP greater than AP, AP increases at an increasing rate

• When MP and AP are equal, AP is maximum

• When MP is less than AP, AP decreases

• When MP is rising, AP must rise, but when MP is falling, AP may rise or fall.

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