Asked by Ismael Santiago on Jun 10, 2024
Verified
When the total product is at its maximum level, the marginal product is zero.
Marginal Product
The additional output generated by employing one more unit of a particular input, holding all other inputs constant.
Total Product
The overall quantity of output produced by a firm from a given quantity of inputs.
- Comprehend how total, marginal, and average products relate to production efficiency.
Verified Answer
AA
Akash AulakhJun 16, 2024
Final Answer :
True
Explanation :
When the total product reaches its maximum level, 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, or the additional output resulting from a one-unit increase in the variable input, is zero at this point.
Learning Objectives
- Comprehend how total, marginal, and average products relate to production efficiency.