Advertisements
Advertisements
Question
Answer the following question.
State the relation between marginal product and average product. Show this relation in a diagram.
Solution
Both AP and MP are related to TP i.e. AP = `"TP"/"L", "MP" = (Δ"TP")/(Δ"L")`
Initially, with rise in the TP curve, AP and MP both rises, but MP rises at a faster rate than AP and attains its maximum point at B.
AP continues to rise till point A. MP starts falling after reaching its maximum point B. MP cuts AP at point A, where AP = MP.
When AP and MP both fall, MP falls at a faster rate than AP.
MP, AP continues to falls, but MP becomes zero (corresponding to the maximum point of TP), thereafter becomes negative. AP remains positive and approaches the x-axis, but never touches the axis.
APPEARS IN
RELATED QUESTIONS
Complete the following table:
| Units of Labour | Average Product (Units) | Marginal Product (Units) |
| 1 | 8 | ............. |
| 2 | 10 | ............ |
| 3 | ............ | 10 |
| 4 | 9 | ........... |
| 5 | ............. | 4 |
| 6 | 7 | ............ |
Complete the following table:
|
Units of Labour |
Average Product (Units) |
Marginal Product (Units) |
|
1 |
16 |
……. |
|
2 |
20 |
…….. |
|
3 |
……. |
20 |
|
4 |
18 |
…….. |
|
5 |
…… |
8 |
|
6 |
14 |
…….. |
