Which of the following statements is necessarily false?
A)AP falls when it is less than MP.
B)AFC is horizontal.
C)MP is constant when it equals AP.
D)MP falls when it exceeds AP.

Question

Quizplus · Accepted Answer

When AP is less than MP, AP is actually increasing, not falling, because the marginal product (MP) is adding more to the total output than the average product (AP) up to that point, which pulls the average up.

Which of the Following Statements Is Necessarily False