Identify the CORRECT relationship(s) between the average product of labour () and marginal product of labour () in the short-run.
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2 marksMicroeconomicsProduction and returns to scaleProduction function, marginal and average productModerateabout 2 min
IIT JAM 2026 Question 31: Production and returns to scale
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Identify the CORRECT relationship(s) between the average product of labour (AP_L) and marginal product of labour (MP_L) in the short-run. (A) If MP_L>AP_L, then dAP_L/dL>0 (B) If MP_L<AP_L, then dAP_L/dL>0 (C) If MP_L>AP_L, then dAP_L/dL<0 (D) If MP_L<AP_L, then dAP_L/dL<0
Production and returns to scale has come up 92 times in 6 exams since 2007.
What this question tests
This question is on Production function, marginal and average product, part of Production and returns to scale in Microeconomics.
How output depends on inputs, and the law of diminishing returns to a variable factor.
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