The total output is at its maximum when marginal output is ___________.
A
infinite
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B
one
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C
zero
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D
less than zero
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Solution
The correct option is B zero
Marginal Product is the defined as the change in total product resulting from one additional unit of a variable factor. For output to be maximized the marginal product should be 0. As if marginal product ≥ 0 it is profitable to increase production. If marginal product ≤ 0 it is profitable to decrease production.