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Chapter 8: Problem 33

When total output is maximized, marginal output is ____. a) rising b) falling c) positive d) negative e) zero

Short Answer

Expert verified
e) zero

Step by step solution

01

Definition of Marginal Output

Marginal output refers to the change in total output resulting from a one-unit increase in the use of a particular input (such as labor or capital) while keeping other inputs constant. Essentially, it's the additional output gained from using one more unit of a certain input.
02

Relationship between Marginal Output and Total Output

When total output is maximized, it means that using more of the input would not result in higher total output. At this point, increasing the input even by one unit, would either have no effect or would decrease the total output. In other words, the change in total output due to the addition of one more unit of input is no longer positive at this stage. This is because the marginal output would be either zero (i.e., adding one more unit of input doesn't change total output) or negative (i.e., adding one more unit of input would actually decrease total output).
03

Eliminating Incorrect Choices

a) If marginal output is rising, it means that total output is increasing at an increasing rate, which is not the point of maximum total output. b) If marginal output is falling, it means that total output is increasing but at a decreasing rate, which is still not the point of maximum total output. c) If marginal output is positive, it means that total output is increasing, but not necessarily at the maximum point. d) If marginal output is negative, it means that adding more of the input decreases total output, which is past the point of maximum total output.
04

Correct Answer

e) When total output is maximized, marginal output is zero. This means that adding one more unit of input does not change the total output, hence it has reached its maximum point.

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