Assertion: As long as the Average Product (AP) of an input increases, it must be the case that Marginal Product (MP) is greater than AP.
Reasoning: AP curve cuts MP curve from above at its maximum.
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Assertion (A) is true but Reasoning (R) is not correct.
Assertion: As long as the Average Product (AP) of an input increases, it must be the case that Marginal Product (MP) is greater than AP. This is correct. As long as the AP increases, it must be the case that MP is greater than AP. Otherwise, AP cannot rise. Similarly, when AP falls, MP has to be less than AP.
Reasoning: AP curve cuts MP curve from above at its maximum. This is false. MP curve cuts AP curve from above at its maximum.
