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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost3 Marks
Question
Do you agree with the view that TP increases even when MP is decreasing?
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Answer

Yes, TP increases even when MP is decreasing, because MP is an addition to TP. When MP is decreasing, only an addition to TP is decreasing i.e TP continues to increase, though at a diminishing rate. TP starts declining only when MP becomes negative.

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