Option 2: Rise. -> When Marginal Product (MP) is greater than Average Product (AP), each additional unit of input contributes more to total output than the current average. This pulls the average upward, causing the Average Product to rise. This relationship continues until MP equals AP, at which point AP reaches its maximum. After that point, if MP falls below AP, the Average Product begins to decline. This is a fundamental principle in production theory that explains the inverse 'U'-shaped curve of Average Product. -> correct
In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this…
CUET UG 2025 — Economics Micro
In inverse 'U'-shaped average product curve; as long as the value of Marginal Product remains higher than the value of the average product, in this condition the average product continues to ..........
Held on 27 May 2025 · Verified 13 Jul 2026.
Options
- A
Fall.
- B
Rise.
- C
Constant.
- D
Zero.
Did you get this right?
Sign in to track your attempts and accuracy.
Your note
Sign in to keep a private note on this question. Nothing you write is ever public.
CUET UG Micro in other years
More CUET UG Micro questions
The point on the supply curve at which a firm earns only normal profit is called ...........
The price and quantity demanded are __________
Select the INCORRECT feature of the market with respect to perfect competition. 1. The market consists of a large number of buyers and sellers. 2. Entry into the market as well as exit from the market are free for firms. 3. Buyers are price makers. 4. There is perfect knowledge.
The allocation of scarce resources and the distribution of the final goods and services are the _____ of any economy. 1. States problems 2. Consumption problems 3. Central problems 4. Production problems
Any allocation of resources by the society would result in the _____ of a particular combination of different goods and services.
Other Economics topics for CUET UG
Keep practicing Micro
Work through every CUET UG Micro PYQ, year by year.