Final answer:
TP is falling when MP is negative, indicating that the production is becoming less efficient and the total output is starting to decline even though it might still be positive.
Step-by-step explanation:
When Marginal Product (MP) is negative, it indicates that each additional unit of input is producing less output than the previous unit. This does not imply that Total Product (TP) is negative; rather, TP may still be positive but it is no longer increasing at the rate it was before. In this context, the correct answer is that when MP is negative, TP is falling. This means that TP has reached its maximum and is now beginning to decline as additional units of input result in less output.
- When MP is positive and decreasing, TP is increasing at a decreasing rate.
- When MP is zero, TP is at its peak or maximum.
- When MP becomes negative, it could signify that the production process has become inefficient, potentially due to factors such as overuse of inputs, causing TP to decrease.