Giving reasons, state whenever the following statements are true or false:
(i) Average Product will increase only when Marginal Product increases.
(ii) With increase in level of output, Average Fixed Cost goes on falling till reaches zero.
(iii) Under diminishing returns to factor, Total Product continues to increase till Marginal Product reaches zero.
(i) False, Average Product can rise even when Marginal Product falls, but lies above AP.
(ii) False, because as output increases, Average Fixed Cost falls but can never be zero. Average Fixed Cost must remain positive even when it is falling continuously with rise in output.
(iii) True, Total Product declines only when Marginal Product is negative.