Question

At what point is Marginal Product (MP) zero according to the relationship between TP and MP?

Options

• When TP is rising at a diminishing rate

• When TP is at its maximum

• When TP is falling

• When TP is rising at an increasing rate

Answer 1

When TP is at its maximum

Explanation:

MP equals zero precisely when TP reaches its highest value; extra input does not change total output.