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When AP and MP curves are rising, MP curve rises- 1 point (a) at a faster rate (b) at a lower rate (c) at normal rate (d) at constant rate?
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When AP and MP curves are rising, MP curve rises- 1 point (a) at a fas...
Explanation:

When the average product (AP) and marginal product (MP) curves are rising, it indicates that the production process is becoming more efficient. In this scenario, the marginal product curve rises as well. However, the rate at which it rises depends on certain factors.

Factors affecting the rate of marginal product curve:

1. Law of Diminishing Marginal Returns: As the production process continues, the marginal product curve will eventually begin to rise at a slower rate. This is due to the law of diminishing marginal returns. When additional units of input are added to the production process, the marginal product of each unit will eventually decrease.

2. Level of Fixed Inputs: If the production process has a fixed level of inputs, such as machinery or equipment, then the marginal product curve may rise at a slower rate. This is because the level of fixed inputs can limit the amount of output that can be produced.

3. Level of Variable Inputs: If the production process has a high level of variable inputs, such as labor or raw materials, then the marginal product curve may rise at a faster rate. This is because the level of variable inputs can be increased to produce more output.

Conclusion:

Therefore, the rate at which the marginal product curve rises depends on the factors mentioned above. In general, if the production process is becoming more efficient, then the marginal product curve will rise. However, the rate at which it rises may vary depending on the input levels and the law of diminishing marginal returns.
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When AP and MP curves are rising, MP curve rises- 1 point (a) at a faster rate (b) at a lower rate (c) at normal rate (d) at constant rate?
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When AP and MP curves are rising, MP curve rises- 1 point (a) at a faster rate (b) at a lower rate (c) at normal rate (d) at constant rate? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about When AP and MP curves are rising, MP curve rises- 1 point (a) at a faster rate (b) at a lower rate (c) at normal rate (d) at constant rate? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for When AP and MP curves are rising, MP curve rises- 1 point (a) at a faster rate (b) at a lower rate (c) at normal rate (d) at constant rate?.
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