When marginal productivity is diminishing, what will be TP, MP, AP?
1 answer
When marginal productivity is diminishing, the total product (TP) will continue to increase, but at a decreasing rate. The marginal product (MP) will begin to decline, indicating that each additional unit of input is providing less output than the previous unit. Finally, the average product (AP) will also start to decline, as the diminishing marginal productivity reduces the average output per unit of input.