# What is the relationship between marginal and average productivity?

## What is the relationship between marginal and average productivity?

The relationship between the marginal product and the average product of an input is that the marginal product of an input will always cross the average product at its maximum point.

### What is marginal productivity curve?

MARGINAL PRODUCT CURVE: A curve that graphically illustrates the relation between marginal product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the incremental change in output at each level of a variable input.

#### What is the the difference between average productivity and marginal productivity?

The firm’s marginal and average productivity use the same figures but the outcome is expressed differently. Thus, average productivity graphs the output of each worker whereas marginal productivity graphs the output from adding a worker.

What is the shape of marginal product and average product curves?

All – TP, MP and AP curves, are inverted U-shaped.

What do you understand by average productivity and marginal productivity of land?

The average productivity of land means the output obtained from the land divided by the area of land, say output per acre or per hectare of land. The marginal productivity of land means the increase in the output obtained from land when the area of the land used increases by one unit, say by one acre.

## When the marginal product curve is above the average product curve?

When marginal product is above average product, average product is rising. When marginal product is below average product, average product is falling. Figure 8.2 From Total Product to the Average and Marginal Product of Labor.

### What is average product curve?

AVERAGE PRODUCT CURVE: A curve that graphically illustrates the relation between average product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the per unit output at each level of the variable input.

#### What is average productivity?

Average productivity is the total production involved in a process divided by the number of variable unit inputs employed. It is what each employee produces. If there are 100 employees producing 500 units per day, the average product of variable labor input are 50 units per day.

What is TP AP and MP?

TP stands for the Total product, MP stands for the Marginal Product and AP stands for the average product. Let’s understand these briefly. Total Product: Total product is referred to as the relationship between the variable input and the output, when all other factors of input are constant.

What is an average product curve?

## What is average productivity of land?

If we consider cultivating land then the productivity of the land would be the quantity grains produced and divided by the area of that piece of land. There are two ways of expressing productivity of land. They are : Average productivity.

### Why is the average product curve below the marginal product curve?

For example, if adding another worker increases output by more than the average product of the total labor force, then the marginal product of the new worker will raise the average product amount. Thus, the average product curve must be below the marginal product curve.

#### What is the marginal product?

It denotes the addition of variable factor to total product. Thus, Marginal product= Changed output/ changed input. In other ways, marginal product leads to an increase of total product with the help of additional worker or input. In order to derive the relation, first students need to remember the total product formula.

How do you know if your marginal product curve is diminishing?

So in general, if you see total product as a function of labor, or total output as a function of labor, and the curve is getting less and less and less steep, well, that tells you that your marginal product is going lower and lower and you’re getting diminishing marginal returns.

How do Economists calculate marginal product of Labor and capital?

To do this, economists use marginal product of labor and marginal product of capital. Mathematically, the marginal product of labor is just the change in output caused by a change in the amount of labor divided by that change in the amount of labor.

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