Asked by Abigail Bailey on Jun 03, 2024
Verified
The total output of a firm will be at a maximum where
A) MP is at a maximum.
B) AP is at a minimum.
C) MP is zero.
D) AP is at a maximum.
Marginal Product
The additional output that is produced by employing one more unit of a particular resource.
Average Product
The output produced per unit of input, calculated by dividing total production by the total number of inputs.
- Understand the concept of maximum total output related to marginal and average product.
Verified Answer
GM
Godfrey MawereJun 05, 2024
Final Answer :
C
Explanation :
DThe total output of a firm will be at a maximum where the Marginal Product (MP) is zero, indicating that adding more of the variable input does not increase total output. Additionally, when the Average Product (AP) is at its maximum, it suggests that the firm is operating at its most efficient level of production, contributing to maximizing total output.
Learning Objectives
- Understand the concept of maximum total output related to marginal and average product.