Practicing Success

Register
Start Free Mocks
CUETMOCK

Ace Your

CUET Preparation Today

Start Free Mocks
Home Questions 6F54A7HQ6B
Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
Two friends Pari, Tanishtha and Shweta were discussing economics. Pari said that :As long as the AP increases, MP is greater than AP and MP can either rise or fall.
Tanishtha objected by saying that if MP is greater than AP then how can it fall?
Shweta replied: Pari is correct.
Who do you think is right?
Options:
Pari
Tanishtha
Shweta
Pari and Tanishtha
Correct Answer:
Pari and Tanishtha
Explanation:
As long as the AP increases, MP is greater than AP and MP can either rise or fall. Even if MP is falling, it doesnt mean it has become lower than AP. MP while falling can still be greater than AP. Hence Tanishtha is wrong and Pari and Tanishtha both are correct.

CUET Questions