Advertisements
Advertisements
Question
When marginal product is zero, what happens to the total product?
Options
Total product will be negative
Total product will be rising
Total product will be maximum
Total product will be falling
MCQ
Advertisements
Solution
Total product will be maximum
Explanation:
Under the Law of Variable Proportions, Marginal Product (MP) measures the additional output added by employing one more unit of input. When MP drops to exactly zero, it signifies that the last unit of input added nothing new to production. At this precise point, the Total Product (TP) reaches its absolute peak (maximum level). Beyond this stage, any additional inputs will yield a negative marginal product, causing the total product to decline.
shaalaa.com
Is there an error in this question or solution?
