Answer to Question #258985 in Microeconomics for pari

Question

When AP L is positive but declining, the MP L could be (i) declining (ii) zero (iii)

negative or (iv) any of them. Which one is the correct alternatives? Explain with diagram.

Answer 1

the correct answer is

(i) declining

MPL is declining when APL is positive and when it has reached its maximum the MPL is equally. Increase in APL leads to the less contribution by MPL and thus overall APL and MPL decreases.