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Question
Define marginal product.
Solution
Marginal Product (MP) is the additional output attributed to an additional unit of the variable factor, other factors remaining constant. For example, if there is an increase in the output with more labour (1 unit), then
MPn = TPn - TPn-1
where
MPn = Marginal product of the nth unit of labour
TPn = Total product produced with n units of labour
TPn-1 = Total product produced with (n - 1) unit of labour
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The following table gives the total product schedule of labour. Find the corresponding average product and marginal product schedules of labour.
|
L |
TPL |
|
0 |
0 |
|
1 |
15 |
|
2 |
35 |
|
3 |
50 |
|
4 |
40 |
|
5 |
48 |
The following table gives the average product schedule of labour. Find the total product and marginal product schedules. It is given that the total product is zero at zero level of labour employment.
|
L |
APL |
|
1 |
2 |
|
2 |
3 |
|
3 |
4 |
|
4 |
4.25 |
|
5 |
4 |
|
6 |
3.5 |
