Question

briefly explain the connection between total product, average product and marginal product for a firm operating with one variable input ..With an appropriate diagram/s

Answer 1

One variable input means it is producing in the short run so the relationship between TP,AP and MP are following.

1, MP curve is the slope of the TP curve at each point.

2, when AP is maximum, MP is equal to AP

3, when TP is maximum,MP = 0

4, when TP is falling,MP is negative

5, as long as TP is positive, MP is positive

6, both AP and MP curve are inverted u-shaped.

7, When MP>AP, this means that AP is rising.

8, when MP = AP, this means that AP is constant.

9, when MP<AP, this means that AP is falling.