In the context of marginal analysis, when does the marginal product of an input equal the total product?

• A. When the production function is linear and only one unit of input is used
• B. When only one unit of input is used and production starts
• C. When the average product is maximized
• D. When diminishing returns set in

Answer: (A)

Verified step by step guidance

1. Understand the definitions: The total product (TP) is the total output produced by a given quantity of input, while the marginal product (MP) is the additional output produced by using one more unit of input.
2. Recall the relationship between marginal product and total product: The marginal product at a certain input level is the slope of the total product curve at that point, i.e., \(MP = \frac{\Delta TP}{\Delta input}\).
3. Consider the case when only one unit of input is used: Since the total product is the output from that single unit, the marginal product of that first unit is equal to the total product at that point.
4. Analyze the shape of the production function: If the production function is linear, the marginal product remains constant and equals the total product for the first unit of input.
5. Recognize that at other points, marginal product generally differs from total product, and concepts like average product maximization or diminishing returns relate to different conditions, not equality of MP and TP.