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The Budget Line

What Happens ...

Question

What Happens to MP When TP Falls?

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Solution

MP becomes negative when TP falls.

Also read:

Total Product Average Product and Marginal Product

Meaning of Demand and Factors Affecting Demand

Law of Variable Proportion

The Law of Diminishing Marginal Product and the Law of Variable Proportions

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Q. When MP is declining, TP must also decline.

Q. State wheather following statement is "true or false". Give reasons in support of your answer :-
a). In a situation of disguised unemployment MP can be negative.
b). When TP becomes constant, MP is negative.
c). MC rises only when AC is rising .
d). When TR rises with constant rate, MR falls.

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