Answer to Question #259118 in Microeconomics for nir

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

(i) Declining: The marginal product is the variation in overall production caused by one extra unit of a changeable component. When MP goes beneath AP's level, it drags it down because if you take a lesser figure and contribute it to the standard, try a fresh mean, and the new estimate has to be less than the prior estimated value.