Which of the following is NOT correct an respect of the relationship between Average Product and Total Product?

None of the above

The correct answer is Option 4: None of the above

Explanation:

1. When TP increases at an increasing rate, AP rises. (Correct)

   • In the initial stage of production, as Total Product (TP) grows rapidly, the Average Product (AP) also rises because inputs are being used more efficiently.

2. AP falls when TP is maximum and constant or when TP decreases. (Correct)

   • When Total Product reaches its maximum, Marginal Product (MP) becomes zero, and AP starts falling.
   • If TP starts decreasing, AP also declines.

3. AP falls when TP increases at a diminishing rate. (Correct)

   • After AP reaches its peak, it starts declining, even though TP is still increasing but at a slower rate (diminishing returns).