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Question
When the Marginal Product turns negative, Total Product will ______.
Options
Fall
Rise
Remain constant
Be zero
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Solution
When the Marginal Product turns negative, Total Product will Fall.
Explanation:
In the third stage of the law of variable proportion, often known as the law of negative returns to factor. It states that if the Marginal Product (MP) is negative, it suggests a negative net addition to total product. This will result in a decrease in Total Product (TP).
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