ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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marginal product is negative
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marginal products is positive
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marginal product equals zero
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marginal product is increasing
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Detailed explanation-1: -Marginal Product is the defined as the change in total product resulting from one additional unit of a variable factor. For output to be maximized the marginal product should be 0. As if marginal product ≥ 0 it is profitable to increase production. If marginal product ≤ 0 it is profitable to decrease production.
Detailed explanation-2: -Total product is at its maximum if and only if marginal product is zero. When average product is equal to marginal product, average product is at its maximum.
Detailed explanation-3: -Diminishing returns occur when the marginal product of the variable input is negative. That is when a unit increase in the variable input causes total product to fall. At the point that diminishing returns begin the MPL is zero.
Detailed explanation-4: -Answer and Explanation: When the total product (TP) is at its maximum level, then marginal product is zero. Marginal product is the slope of the total product. So, at maximum total product, the slope is equal to zero.
Detailed explanation-5: -Answer and Explanation: The correct option is c. Marginal product is at a maximum, and marginal cost is at a minimum.