In a relationship among total average and marginal products where TP is maximized?

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2026-04-20 13:15

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In a relationship among total product (TP), average product (AP), and marginal product (MP), TP reaches its maximum when marginal product (MP) equals zero. At this point, any additional input does not increase total output, indicating that the production capacity has been fully utilized. Before reaching this maximum, MP is positive, contributing to increasing TP, while AP is at its highest when MP equals AP. Thus, the optimal production point occurs where MP intersects the horizontal axis.

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