Which statement correctly describes the relationship between average product (AP) and marginal product (MP)?

Show Answers

When total product decreases, average product becomes negative.Total product reaches its peak when average product equals marginal product.Average product declines when it is greater than marginal product.Marginal product is at its highest point when average product is maximized.

Explanation

If average product is greater than marginal product, it indicates that average product is decreasing. Conversely, when marginal product is higher than average product, the average product is rising. Therefore, the correct statement is that average product falls when it exceeds marginal product.