Total product begins to fall when:
A) marginal product is maximized.
B) average product is below zero.
C) average product is negative.
D) marginal product is zero.

Question

Quizplus · Accepted Answer

Total product begins to fall when marginal product becomes zero. This indicates that the additional output produced by hiring one more unit of variable input such as labor or capital has become zero. Beyond this point, if more units of variable input are added, the total product will decline due to the law of diminishing returns.

Total Product Begins to Fall When