Question

When marginal product reaches its maximum, what can be said of total product?

1 total product must be at its maximum
2 total product starts to decline even if marginal product is positive
3 total product is increasing if marginal product is still positive
4 total product levels off​

Answer 1

The point where marginal product is maximum, total product is increasing since it reflects the sum of all marginal products, and it continues to rise albeit at a decreasing rate as long as marginal product is positive.

Step-by-step explanation:

When the marginal product reaches its maximum, total product is increasing at the fastest rate and will soon reach a point where it will start to increase at a decreasing rate. However, at the exact point where marginal product is at its maximum, it's only the additional production from the last unit of input that is peaking. Answering the student's question, the correct statement regarding total product when marginal product reaches its maximum is that total product is increasing if marginal product is still positive.