Answer to Question #51343 in Microeconomics for Michael

Question

Consider a firm in the short-run. If total product is at its maximum, then marginal product must be at its maximum. True False or Uncertain

Answer 1

If a firm is in the short-run and if total product is at its maximum, then marginal product may not be at its maximum, because according to the law of diminishing returns with the increase in total revenue marginal revenue decreases.
So, the statement is False.