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MICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMICROECONOMICS CH : 7 PRODUCTION FUNTION AND RETURNS TO A FACTOR2 Marks
Question
Why MP curve cuts AP curve from its top?
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Answer

This is because, when AP rises, MP > AP; when AP falls, MP < AP. Accordingly, it is only when AP is constant at its top, that AP MP. Implying that MP curve cuts AP curve from its top.

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