(a)What is the relation between average production and marginal production ? (b)What should be an ideal measure to determine wage rate of labour in a competitive economy

(a)What is the relation between average production and marginal produc

1.	(a)What is the relation between average production and marginal production ? (b)What should be an ideal measure to determine wage rate of labour in a competitive economy
Answer» <html><body><p></p>Solution :(a) (i) AP rises as long as <a href="https://interviewquestions.tuteehub.com/tag/mp-565167" style="font-weight:bold;" target="_blank" title="Click to know more about MP">MP</a>`gt`AP. <br/>(ii) When MP is equal to AP, AP is at its maximum and constant.<br/>(iii) When MP is less than AP, AP <a href="https://interviewquestions.tuteehub.com/tag/falls-983294" style="font-weight:bold;" target="_blank" title="Click to know more about FALLS">FALLS</a>.<br/>(b) In a competitive economy, when we need to minimise <a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> of production and improve overall efficiency, wage rate should be <a href="https://interviewquestions.tuteehub.com/tag/determined-949906" style="font-weight:bold;" target="_blank" title="Click to know more about DETERMINED">DETERMINED</a> on the basis of work efficiency of an individual which <a href="https://interviewquestions.tuteehub.com/tag/ultimately-7384516" style="font-weight:bold;" target="_blank" title="Click to know more about ULTIMATELY">ULTIMATELY</a> can be measured by marginal production.</body></html>