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How does the average product behave when marginal product is less than the average product? - Economics

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प्रश्न

How does the average product behave when marginal product is less than the average product?

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उत्तर

When the marginal product (MP) is less than the average product (AP), the average product falls. This is because the additional unit of input contributes less output than the current average, which pulls the average downwards.

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अध्याय 7: Laws of Returns - Returns to a Factor and Returns to Scale - TEST YOURSELF QUESTIONS [पृष्ठ १३१]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 7 Laws of Returns - Returns to a Factor and Returns to Scale
TEST YOURSELF QUESTIONS | Q 19 (ii) | पृष्ठ १३१
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