Which of the following is NOT correct an respect of the relationship between Total Product and Marginal Product?

When TP becomes maximum and constant, MP becomes negative

The correct answer is option 3: When TP becomes maximum and constant, MP becomes negative

The relationship between Total Product (TP) and Marginal Product (MP) follows a specific pattern:

1. As long as TP increases at an increasing rate, MP also increases. (Correct)

   • In the initial stage of production, adding more inputs increases total product rapidly due to better utilization of resources.
   • This results in rising marginal product.

2. When TP increases at a diminishing rate, MP falls positively. (Correct)

   • After a certain point, the Law of Diminishing Marginal Product sets in, meaning TP is still rising, but at a slower rate.
   • MP starts declining but remains positive.

3. When TP becomes maximum and constant, MP becomes negative. (Incorrect)

   • Correct version: When TP is maximum, MP becomes zero, not negative.
   • MP becomes negative only when TP starts declining.