Which of the following statements is correct for a variable input "a" and short-run product curves? A) When TP_a reaches a maximum, the MP_a is zero. B) Then TP_a reaches a maximum, the MP_a is +1. C) When AP_a reaches a maximum, MP_a is zero. D) When MP_a reaches a maximum, AP_a is zero. E) None of the above is correct.

Question

Quizplus · Accepted Answer

When the Total Product (TP) reaches a maximum, the Marginal Product (MP) is zero because at the maximum point of TP, adding an additional unit of input does not increase the output, indicating that MP, which measures the change in output resulting from a one-unit change in input, is zero.

Which of the Following Statements Is Correct for a Variable