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In the product schedule, total product equals 750 units at both 9 and 10 workers. What does this tell us about the marginal product of the 10th worker?
AIt is positive and rising
BIt is exactly zero
CIt is negative
DIt equals the average product
Answer & Solution
Correct answer: B. It is exactly zero
1. Marginal product is $MP_n = TP_n - TP_{n-1}$.
2. $TP_{10} = 750$ and $TP_9 = 750$.
3. So $MP_{10} = 750 - 750 = 0$.
4. A zero MP marks the maximum of total product (end of Stage 2); it is neither positive, nor negative, nor equal to AP (which is 75 here).
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 3 Unit I "Theory of Production", p.17_
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