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Question
When the Average Product (AP) is maximum, the Marginal Product (MP) is: (Choose the correct alternative)
(a) Equal to AP
(b) Less than AP
(c) More than AP
(d) Can be any one of the above
Solution
Equal to AP
When Average product is maximum, the Marginal product is equal to Average product.
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Average and Marginal Physical Products
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From the following data find out the level of output that will give the producer maximum profit (Use marginal cost and marginal revenue approach,) Give reasons for your answer
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