Explain the relationship between marginal product and average product

1.	Explain the relationship between marginal product and average product
Answer» When MP>AP ap risesWhen MP=AP AP minimumWhen MP<br>The marginal product (MP) and average product (AP) initially increase and then decrease due to the operation of the Law of Diminishing Marginal Returns. As long as MP is higher than AP, AP increases. At the highest point of AP, i.e. when AP is at its maximum, MP is equal to AP. When MP becomes lesser than AP, AP also starts to fall. Thereafter, both AP and MP fall, but MP becomes negative and AP remains positive. Also, MP falls at a faster rate as compared to AP.\xa0

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