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When total product to a variable factor reaches the maximum, what will be the marginal product? - Economics

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Question

When total product to a variable factor reaches the maximum, what will be the marginal product?

Options

  • Negative

  • Increases

  • Decreases

  • Zero 

MCQ
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Solution

Zero

Explanation:

When Total Product (TP) reaches its maximum, the Marginal Product (MP) becomes zero. This is because MP measures the change in TP, and at the maximum point, TP stops increasing, so the change is zero.

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Chapter 7: Laws of Returns - Returns to a Factor and Returns to Scale - TEST YOURSELF QUESTIONS [Page 130]

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Frank Economics [English] Class 12 ISC
Chapter 7 Laws of Returns - Returns to a Factor and Returns to Scale
TEST YOURSELF QUESTIONS | Q 4. | Page 130
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