Thursday, August 12, 2010

Derivation of total product,average product,marginal product curves.

Derivation of total product,average product,marginal product curves.
The total product,average product and marginal product curves can be derived from the table.Suppose that wheat is grown on 10 ropani of land.The fixed input is land,the variable input is labour,and the out put is in quintal.The total product,average product and marginal product are as shown in the table.

Units of labour Total product Average product Marginal product
1 10 10.0 -
2 24 12.0 14
3 39 13.0 15
4 52 13.0 13
5 61 12.2 9
6 66 11.0 5
7 66 9.4 0
8 64 8.0 -2
The table shows the behaviour of total,average and marginal product of labour.The total product first increase,reaches maximum when 7th units of labour is used and then declines.The average and marginal product both increase in the beginning,reach maximum and decline.The marginal product is equal to average product,when average product is maximum.When marginal product is zero,total product is maximum.

2 comments:

  1. This article provides a clear and practical explanation of the relationship between total product, average product, and marginal product. The table-based approach makes it easy to understand how productivity changes as additional units of labour are employed, particularly the important relationship between marginal and average product and the point where total product reaches its maximum. Overall, it is a useful and well-structured resource for understanding the fundamentals of production theory and the law of variable proportions.
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