When Is Marginal Product Maximized?
The General Rule Is That a Firm Maximizes Profit by Producing That Quantity of Output Where Marginal Revenue Equals Marginal Costs. When Marginal Product Is at...
The general rule is that a firm maximizes profit by producing that quantity of output where marginal revenue equals marginal costs.
When marginal product is at its maximum?
When a marginal product reaches its maximum, the total product starts to increase at a diminishing rate.
What is true about marginal product of total product is maximized?
Marginal product is equal to zero. When marginal product equals zero, total product is maximized because the change in total product is zero. Because marginal product is diminishing, adding additional units of variable input beyond this point will result in negative marginal product and a decline in total product.
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