Option 1 -> MP cuts AP at its maximum point, not minimum.
Option 2 -> AP remains constant only when MP equals AP.
Option 3 -> AP decreases when MP is less than AP.
Option 4 -> When MP > AP, each additional unit contributes more than the average, pulling the average upward.
Hence, Option 4: AP Increases -> This follows the fundamental relationship between marginal and average values. When the marginal product exceeds the average product, it pulls the average upward, causing AP to increase. This is similar to how scoring above your current average in exams raises your overall average. The MP curve intersects the AP curve at AP's maximum point, and when MP is above AP (before intersection), AP is rising. -> correct