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JAMB Economics 2004 Question 5

Question 5

Theory of Production

At the maximum point of the total product curve of a firm, marginal revenue is

  1. A.decreasing
  2. B.increasing
  3. C.constant
  4. D.zero
Show the answer and explanation

Answer: D (zero)

Explanation

At the top of the total product curve, adding one more unit of the variable factor adds nothing to output, so the marginal (product) is zero.