Question

What is the MP at the point of inflexion?

Answer 1

Marginal product (MP) is at its maximum at the point of inflexion.

• At the point of inflexion, the Total Product (TP) curve changes its slope from increasing at an increasing rate to increasing at a decreasing rate.
• Consequently, the Marginal Product reaches its maximum peak, marking the end of increasing returns to the variable factor and the beginning of diminishing returns.