Identify the incorrect statement about the relation between Marginal Product(MP) and Average Product (AP).
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → AP can fall even when MP is rising.
According to the relationship between Marginal Product (MP) and Average Product (AP):
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When MP > AP, AP rises.
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When MP = AP, AP is maximum.
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When MP < AP, AP falls.
Therefore, AP cannot fall when MP is rising, because a rising MP indicates it is above AP, which would make AP increase, not decrease.