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JAMB Economics 1994 Question 13

Question 13

Theory of Production

When the Total Product (TP) is at maximum point, the Marginal Product (MP) and the Average Product (AP) respectively are

  1. A.zero and decreasing
  2. B.decreasing and zero
  3. C.negative and decreasing
  4. D.both at their maximum
Show the answer and explanation

Answer: A (zero and decreasing)

Explanation

TP stops rising when the extra unit adds nothing, so MP = 0; AP is already falling at that point.