Relationship Between Marginal Product And Average Product

here I talk about the relationship between marginal product and average product.

1. SUBMITTED BY: REJUWAN AHMED MALIK PGDM – III SEMESTER-1 ST , BATCH 2017-19 RELATIONSHIP BETWEEN MARGINAL PRODUCT AND AVERAGE PRODUCT

2. PRODUCTION PROCESS : COMBINING INPUTS OR FACTORS OF PRODUCTION TO ACHIEVE AN OUTPUT. FACTORS OF PRODUCTION : LABOR CAPITAL TECHNOLOGY (remaining unchanged for the period of analysis) PRODUCTION PRODUCTION FUNCTION FOR TWO INPUTS : Q=f(K,L) ; where, Q = Output, K = Capital & L = Labor for a given technology The  production function  describes the relationship between inputs (i.e. Factors of production) such as capital and labor and the quantity of output that a firm can produce .

3. AMOUNT OF LABOUR (L) AMOUNT OF CAPITAL (K) TOTAL OUTPUT (Q) AVERAGE PRODUCT MARGINAL PRODUCT 10 - - 1 10 10 10 10 2 10 30 15 20 3 10 60 20 30 4 10 80 20 20 5 10 95 19 15 6 10 108 18 13 7 10 112 16 4 8 10 112 14 9 10 108 12 -4 10 10 100 10 -8 APPLICATION

4. RELATIONSHIP BETWEEN TP, MP & AP A TP AP MP X Y Z B C Units of variable inputs per period of time Units of variable inputs per period of time Quantity of output per period of time Quantity of output per period of time OBSERVATIONS LEFT OF Y, MP>AP & AP IS INCREASING RIGHT OF Y, MP<AP & AP IS DECREASING AT Y, MP = AP & AP IS AT ITS MAXIMUM AT X, MP IS MAXIMUM

5. 3 STAGE MODEL Average Product Marginal Product STAGE I STAGE II STAGE III

6. THANK YOU