Marginal product (MP) and the average product (AP) curves are inverse 'U'-shaped. which of the following is correct for AP and MP.

Marginal product curve cuts the average product curve from above at the maximum point of average product curve.

The correct answer is Option (4) → Marginal product curve cuts the average product curve from above at the maximum point of average product curve.

Both the Marginal Product (MP) and Average Product (AP) curves are inverse U-shaped because of the Law of Variable Proportions.

Their relationship can be summarized as follows:

• When MP > AP, the AP is rising.

• When MP = AP, the AP is at its maximum point.

• When MP < AP, the AP starts falling.

Thus, the MP curve intersects (cuts) the AP curve from above at the point where AP is maximum.