Here's a breakdown of why all three statements are true:
- a) The Marginal product (MP) remains above an average product (AP) when AP rises.
- This is true. When MP is higher than AP, it pulls the average up. Think of it like adding a higher score to an existing average; the average will increase.
- b) Marginal product (MP) remains below average product (AP) , in case AP declines.
- This is also true. When MP is lower than AP, it pulls the average down. Similar to adding a lower score to an existing average; the average decreases.
- c) When average product (AP) falls Marginal product (MP) falls.
- This is true. Since the MP curve intersects the AP curve at the AP's maximum point, once the AP starts to fall, the MP has already fallen, and continues to fall.
