Giving reason, state whether the following statements are true or false (i) AP will increase only when MP increases. (ii) Under diminishing returns to a factor TP continues to increase till MP reaches zero.

Giving reason, state whether the following statements are true or fals

1.	Giving reason, state whether the following statements are true or false (i) AP will increase only when MP increases. (ii) Under diminishing returns to a factor TP continues to increase till MP reaches zero.
Answer» Solution :(i) False. AP increases as long as MP is greater than AP. It does not MATTER whether MP is increasing or decreasing. (II) TRUE. TP increases as long as MP reaches 0. When MP becomes negative, TP starts FALLING.