Question

When MPP (Marginal Physical Product) cuts APP (Average Physical Product) at its highest point then:

• A. MPP \(>\) APP
• B. MPP \(<\) APP
• C. MPP \(=\) APP
• D. MPP is also at its highest level

Hint:

MPP = APP at APP’s peak; MPP drives APP’s rise or fall.

Answer 1

The Correct Option is C

Step 1: \( APP = \frac{TP}{L} \), and APP is maximum where its slope with respect to L is zero.
Step 2: Setting \( \frac{d(APP)}{dL} = 0 \) gives \( L \cdot MPP - TP = 0 \).
Step 3: This simplifies to \( MPP = \frac{TP}{L} = APP \), matching option 3.
Correct option: \[ \boxed{MPP = APP} \]