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Question
State the behaviour of marginal product when only one input is increased and other inputs are hold constant.
Solution
When only one input is increased and other inputs are hold constant, the MP will be
| Units of Variable Factor | TP | MP | Change in the MP Curve |
| 0 | 0 | MP curve increases at an increasing rate till 3rd unit | |
| 1 | 4 | 4 | |
| 2 | 12 | 8 | |
| 3 | 24 | 12 | |
| 4 | 32 | 8 | MP curve continues to fall from 5th unit |
| 5 | 34 | 2 | |
| 6 | 30 | -4 | MP curve continues to fall and it becomes negative from 6th unit |
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RELATED QUESTIONS
Define marginal product.
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(i) When marginal revenue is constant and not equal to zero, then total revenue will also be constant.
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|
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 |
