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Economics miscellaneous

  1. If total product is at its maximum then:
    (AP= Average product)
    (MP= Marginal product)
    1. AP = 0
    2. AP < 0
    3. MP = 0
    4. AP = MP = 0
Correct Option: C

Total product (TP) is the total output a production unit can produce, using different combination of factors of production. When marginal product =0 (at point D in the figure), the total product is at its maximum (as seen at point C in the figure given below). Then en as the marginal product becomes negative, the total product starts going down.



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