(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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