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Home Questions 95PJ7E7JJB
Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:
Which of the following statement/statements are true?
Statement 1: When MP is falling, AP can still be rising.
Statement 2: As long as the value of MP remains higher than the value of the AP, the AP continues to rise.
Options:
Both the statements are true.
Both the statements are false.
Statement 1 is true and Statement 2 is false
Statement 2 is true and Statement 1 is false
Correct Answer:
Both the statements are true.
Explanation:
When MP is falling AP can still be rising as long as MP is greater than AP. As long as the value of MP remains higher than the value of the AP, the AP continues to rise.

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