FAQs
MP is the rate of TP. When MP = 0 there is no change or addition in TP. Implying that TP should be maximum when MP = 0.
What happens to TP when MP is 0? ›
When MP is zero, the value of TP is maximum. Also read: Total Product Average Product and Marginal Product. Meaning of Demand and Factors Affecting Demand.
Why does the total product reach its highest when MP 0? ›
Once MP reaches zero than TP is at its maximum because the production of the next unit will mean that MP is negative, therefore decreasing Total Product.
When MP zero TP reaches its maximum level? ›
When the marginal product (MP) is zero, the total product (TP) has reached its maximum value. The MP follows the law of diminishing returns. This means that when MP equals zero, it has been falling. After it crosses zero, MP continues to fall and takes negative values.
When MP is the maximum point of TP? ›
The maximum point of TP is when MP becomes zero.
Is TP constant when MP is zero True or false? ›
MP is the rate of TP (i.e., it measures the change in TP). When MP=0, there is no change (or addition) in TP. Implying that TP should be maximum when MP=0.
What is the relationship between TP and MP? ›
Relationship between Total Product and Marginal Product
TP increases at an increasing rate when MP increases. This pattern provides a Total Product Curve with a shape of convex. It then continues till MP reaches the maximum point of TP. Where MP declines and stays positive, TP increases at a decreasing rate.
Is total product maximized when marginal product is zero? ›
Answer and Explanation:
Total product is maximized when the marginal product is zero. True. The point at which the marginal product is zero is the point at which the total product is maximized. Past this point, the marginal product is negative, which means that total production decreases.
When the total product TP curve reaches its maximum? ›
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.
When TP becomes constant at its maximum what happens to MP? ›
TP, MP, AP: Shape of the Curves
This trend continues till TP reaches its maximum. Here, MP =0. After the maximum, TP starts to fall or it declines. The MP curve also initially increases, reaches its maximum and then declines.
Total product can increase even if marginal product is decreasing, but remains positive. This is the phase of diminishing returns to a factor. Total product will start falling only if marginal product becomes negative.
Does TP increase even when MP is decreasing? ›
Answer: When MP is decreasing, only an addition to TP is decreasing i.e. TP continues to increase, though at a diminishing rate. TP starts declining only when MP becomes negative.
At what point is MP maximum? ›
Point of inflexion is the point where the slope of the TP curve reaches the maximum and starts decreasing. At this point, MP is maximum.
What happens to TP when MP is zero? ›
When MP = 0 there is no change or addition in TP. Implying that TP should be maximum when MP = 0.
What happens to TP when MP increases? ›
When MP rises, TP rises at an increasing rate.
What is the condition for maximum point? ›
When f (x) = 0, maxima and minima occur. If f (a) = 0 and f (a) < 0, x = an is a maximum; if f (a) = 0 and f (a) > 0, x = a is a minimum. A point of inflection is defined as the point where f (a) = 0 and f (a) = 0.
What happens if the marginal propensity to save is zero? ›
The value of the marginal propensity to save always varies between zero and one, where zero indicates that changes in income have no effect on savings whatsoever.
What happens when marginal product is 0? ›
Answer and Explanation:
When the marginal product is zero, then the total output produced is at the highest level. Hence, the total product is also at the highest possible level.
What happens to TP when MP is constant? ›
When MP (Marginal Product) is constant, TP (Total Product) increases at a constant rate.
When MP is negative, TP will? ›
When MP is declining TP should be increasing, though at a diminishing rate. It is only when MP is negative that TP must decline.