In the process of production, total output is at maximum when

Assessment: JAMB UTME - Economics - 2011 Subject: Economics

Question 1 Report

In the process of production, total output is at maximum when
Answer Details
Total output is at its maximum when Marginal Product (MP) is equal to zero. This is because as the production increases, the increase in output (the MP) will eventually start to decrease, meaning that adding more resources is no longer resulting in a larger increase in output. When MP equals zero, it means that the production has reached its maximum level, and adding more resources will not result in an increase in output. On the other hand, Average Product (AP) can be greater than or equal to zero at the maximum point of output. AP is the average output per unit of input, and it will continue to decrease as the production increases and the inputs become more spread out over more output.

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