Question

Explain the relationship between the marginal products and the total product of an input.

Answer 1

(i) When MP increases, TP increases at an increasing rate.
(ii) When MP decreases, TP increases at a diminishing rate.
(iii) When MP is constant, TP increases at a constant rate.
(iv) When MP is zero, TP is maximum.
(v) When MP is negative, TP declines.