Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Production and Costs

Question:

Maximum value of Total Product is  ----------------.

Options:

When MP=AP

When MP>AP

When MP=0

When AP=0

Correct Answer:

When MP=0

Explanation:

The correct answer is Option 3: MP=0

 Explanation:

The Total Product (TP) reaches its maximum when the Marginal Product (MP) becomes zero.

  1. Marginal Product (MP) is the additional output produced by an extra unit of input.
  2. As long as MP is positive, TP continues to rise.
  3. When MP = 0, TP reaches its maximum—this is the peak of production.
  4. If MP becomes negative, TP starts to decline.