Question

When marginal production increases, then total production increases at which rate?

• A. Increasing rate
• B. Constant rate
• C. Diminishing rate
• D. None of these

Hint:

MP is the slope of TP. Rising MP $\Rightarrow$ steeper TP $\Rightarrow$ TP increases at an increasing rate.

Answer 1

The Correct Option is A

Total Product (TP) is the integral/sum of marginal products, and the slope of the TP curve at any input level equals Marginal Product (MP).
If MP is increasing, the slope of TP is rising—hence TP increases at an increasing rate (the TP curve is convex up).
If MP were constant, TP would rise at a constant rate; if MP were decreasing but positive, TP would rise at a diminishing rate.