Answer to Question #302681 in Microeconomics for Bhavika

Question

Show diagrammatically the relationship between average product and marginal product. Can there be a range of output in which marginal product falls but average product continues to rise? Give reasons.

Answer 1

no, there can't be a range of output because the average product does not only rise when the marginal product increases. But, there also exist a region where average product continues to rise corresponding to the falling marginal product.