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Unformatted text preview: is at its maximum, point (C) iii) Total Product is at its maximum when Marginal Product is zero (D) iv) Marginal Product = Average Total Product where Average Product is at its peak (C) v) Marginal Product > Average Total Product when Average Product is rising and vice versa vi) Marginal Product reaches its maximum before Average Total Product does d) Knightian Stages i) When X 1 < intersection of ATP and MP (1) Excessive amounts of X 2 for the chosen amount of X 1 ii) Intersection of ATP and MP < X 1 < MP = 0 (1) Efficient levels of production, preferably to the point where MP = 0 iii) MP = 0 < X 1 (1) Too much X 1 for the given amount of X 2 iv) Zone I is Zone III for X 2 2 4 J L...
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This note was uploaded on 04/10/2008 for the course ECON 3150 taught by Professor Tittle during the Spring '08 term at Georgia Institute of Technology.
 Spring '08
 Tittle

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