When the marginal product of a variable input is zero, it implies that the firm is at the point where the total product is:
A) increasing at an increasing rate.
B) also equal to zero.
C) at its maximum.
D) decreasing at an increasing rate.
E) increasing at a decreasing rate.

Question

Quizplus · Accepted Answer

When the marginal product of a variable input is zero, it means that the total product is no longer increasing, which indicates that the firm has reached the maximum point of its production possibility with a given amount of the variable input. Therefore, the correct choice is C.

When the Marginal Product of a Variable Input Is Zero