Maximum value of Total Product is ----------------.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3: MP=0
Explanation:
The Total Product (TP) reaches its maximum when the Marginal Product (MP) becomes zero.
- Marginal Product (MP) is the additional output produced by an extra unit of input.
- As long as MP is positive, TP continues to rise.
- When MP = 0, TP reaches its maximum—this is the peak of production.
- If MP becomes negative, TP starts to decline.