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What is the relationship between marginal product and average product?
If average product is decreasing then?
Average Product = (Total Product) / (Labor) Marginal Product(2) = (Total Product)(2) - (Total Product)(1)
The marginal product curve is 'n' shaped because of the law of diminishing returns. As you add more units of a variable factor, at first, the marginal product rises, (this is …because the fixed factor is under-utilised, so adding more units of the variable factor will increase the output from each additional unit). But after a certain point, the marginal product begins to fall, as the fixed factor input becomes diluted amongst workers and so you get less from each additional unit of the variable factor. For an example, re-read the above paragraph and replace the word variable factor with labour and fixed factor with capital. The marginal cost curve is the inverse of the marginal product curve - hence it is shaped like a 'u' or a 'Nike tick'. This is because if your marginal product is high - then your marginal costs are low. For example, if a firm must pay electricity for the time it takes to produce a unit, if the firm can produce the unit quicker (i.e. has a high marginal product) then the cost of electricity will be lower. Hence the inverse relationship between marginal cost and marginal product.
What is the relationship between average and marginal productivity?
What is the relationship between marginal physical product MPP and marginal cost MC Provide an examples?
what is the relationship between marginal physical product and marginal cos
Draw a diagram with marginal product and average productExplain the relationship between marginal product and average product?
Marginal product is any input in the production process is the increase in the quantity of output obtained from on additional unit of the input. Average product is the output… produced when one more unit of the variable factor is employed The relationship is state as: If labour's marginal product is exceed its average product that means labour's average product will be rising. Labour's average product will be falling. If labour's marginal product is less than its average product. If labour's marginal product is equal its average product and the average product will reach the minimum value at the point.
Just remember that marginal always leads average. Whatever the marginal product does the average will always do the same soon after.
Marginal product is equal to average product when average product is maximum Marginal product determines the behaviour of the Average product. AP rises, reaches maximum and …thereafter falls.For all sections that the MP is greater than the AP, the AP rises and MP is below AP, the AP decreases.Marginal product reaches maximum at a lower level of employment than does the AP
There is an inverse relationship between the two. The formula for showing this is AVC=1/APL. Using this formula you will be able to figure out each one.
Average and marginal productivity are analytical tools used to measure the output of labor in order to evaluate current production ability and improve future capacity. Ave…rage productivity is the total production involved in a process divided by the number of variable unit inputs employed. It is what each employee produces. Marginal productivity is the increase in the rate of output created by adding one more unit of the input while maintaining the same constant inputs.
I'm thinking that marginal revenue product is the marginal revenue on one product, and marginal revenue is the marginal revenue on the whole firm sales... I'm wondering the s…ame thing but the above response is incorrect. both terms imply values on one item as indicated by the "marginal"
What is the difference between the marginal product of labor and the marginal revenue product of labor?
moarginal product of labor
Because the Almighty Gaylord Focker wanted it that way. HALLELUJAH!!
Total product is the sum of all marginal products.
Example: When you have a high quality raw material, you may have a low defect/reject. This may lead you to have high productivity. Productivity = Output / Input. Raw material… is an input which can be transformed into a product (output). By the formula of Productivity, high quality of input (use small amount, less defect or reject) may lead to have high output and result on high productivity.
We can think about this problem as both side that is long term and short term. This relation is invers ratio, I mean, If average cost increase, average product should decrease….