Question

Relation between MPP and TPP

1. As long as MPP increases, TPP increases at an increasing rate.

2. When MPP decreases, TPP increases at diminishing rate.

3. When MPP is Zero, TPP is maximum

4. When MPP is negative, TPP starts decreasing.​

Answer 1

Answer:

Marginal physical product (MPP) is the change in the level of output due to a change in the level of variable input; restated, the MPP is the change in TPP for each unit of change in quantity of variable input.