The total output of a firm will be at a maximum where
A)MP is at a maximum.
B)AP is at a minimum.
C)MP is zero.
D)AP is at a maximum.

Question

Quizplus · Accepted Answer

DThe total output of a firm will be at a maximum where the Marginal Product (MP) is zero, indicating that adding more of the variable input does not increase total output. Additionally, when the Average Product (AP) is at its maximum, it suggests that the firm is operating at its most efficient level of production, contributing to maximizing total output.

The Total Output of a Firm Will Be at a Maximum