The true statement about the average product is:
It increases before reaching a maximum and then decreases.
In the context of production, the average product (AP) refers to the output produced per unit of a variable input (usually labor). Initially, as more of the variable input is added, the average product tends to increase due to increased efficiency. However, after reaching a certain level of input, the average product will begin to decrease due to diminishing marginal returns. This establishes a relationship where the average product increases to a maximum point and then starts to decrease.