Asked by Ebba Maria Stillman on May 16, 2024
Verified
At the point where total product is ________, marginal product is zero, but average product is still positive.
A) maximized
B) minimized
C) zero
D) negative
Total Product
The total quantity of output produced by a firm for a given quantity of inputs.
Marginal Product
The additional output that is generated by adding one more unit of a specific input, ceteris paribus.
- Recognize the significance of the law of diminishing marginal returns in manufacturing outputs.
Verified Answer
DD
Danielle DucheineMay 18, 2024
Final Answer :
A
Explanation :
When total product is maximized, it means that adding more units of the variable input (e.g., labor) does not increase the total output, which is why the marginal product (the change in total output from adding one more unit of input) is zero at this point. However, the average product (total output divided by the number of units of input) can still be positive, as there is still output being produced.
Learning Objectives
- Recognize the significance of the law of diminishing marginal returns in manufacturing outputs.
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