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Explain the relationship between AP and MP.

Asked by Topperlearning User 25th April 2016, 1:39 PM
Answered by Expert
Answer:

Here the table and the diagram below shows the following relationship between AP and MP:

 AP increases as long as MP is greater than AP. Till the point p, AP is at maximum.

 AP decreases when MP < AP. Beyond the point p, AP is at its top.

 AP is at its maximum when AP = MP. MP curve cuts AP from above at its maximum.

 MP may be zero or negative, but AP remains positive.

 

Units of Fixed Factor

Units of Variable Factor

AP

MP

1

0

0

0

1

1

4

4

1

2

10

16

1

3

16

28

1

4

17

20

1

5

16

10

1

6

14

4

1

7

12

0 

1

8

1

-4

 

  

Answered by Expert 25th April 2016, 3:39 PM
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