Explain the relationship between the marginal product and total product of an input. (2024)

FAQs

Explain the relationship between the marginal product and total product of an input.? ›

When the Marginal Product (MP) increases, the Total Product is also increasing at an increasing rate. This gives the Total product curve a convex shape in the beginning as variable factor inputs increase. This continues to the point where the MP curve reaches its maximum.

Relationship between Total Product and Marginal Product

TP increases at an increasing rate when MP increases. This pattern provides a Total Product Curve with a shape of convex. It then continues till MP reaches the maximum point of TP. Where MP declines and stays positive, TP increases at a decreasing rate.

Relationship between TP and MP of an input is as follows: i When MP increases TP increases at an increasing rate. ii When MP decreases TP increases at a diminishing rate. iii When MP is constant TP increases at a constant rate.

Marginal product is the increase in total product as a result of adding one more unit of input. (textbook definition.) Average product is the total product (or total output) divided by the quantity of inputs used to produce that total.

The relationship between TPP and MPP can be explained as given below: (i) As long as MPP increases, TPP increases at an increasing rate. (ii) When MPP falls but remains positive, TPP increases but at a diminishing rate. (iii) When MPP becomes zero, TPP is maximum.

Relationship between Marginal Product and Total Product

It states that when only one variable factor input is allowed to increase and all other inputs are kept constant, the following can be observed: When the Marginal Product (MP) increases, the Total Product is also increasing at an increasing rate.

There is a close relationship between Total Cost and Marginal Cost. We know the marginal cost is the addition to total cost when one more unit of output is produced. When TC rises at a diminishing rate, MC declines. As the rate of increase of TC stops diminishing, MC is at its minimum point.

In simple terms, the Relationship between TP and MP can be summarised as: MP increases when TP increases at an increasing rate. MP starts declining when TP increases at a diminishing rate. MP is zero when TP is maximum.

When MP rises, TP rises at an increasing rate.

Total product TP is the total quantity of a commodity produced in a given period. Marginal product MP is additional quantity of the commodity produced by using an additional unit of a variable factor. Average product AP is the output per unit of the variable factor.

What is the relationship of total product and marginal product in the different stages of the law of variable proportion? ›

The schedule and diagram show that there are three phases of the law of variable proportions. In phase I, TPP increases at an increasing rate and MPP rises. In phase II, TPP increases at decreasing rate and MPP falls but remains positive. In phase III, TPP starts falling and MPP becomes negative.

The total value is the combined benefit that is received for consumption of a good or service. The marginal value, on the other hand, is just the benefit received from a specific unit of a good or service. Formally, the marginal value is measured as the additional benefit received from an additional unit.

The marginal product shows the change in the total product when an additional unit of the variable factor is used. Marginal cost shows the change in the total cost when an additional unit of output is produced.

TPP falls when MPP is negative. MPP defines the slope of TPP. When MPP is negative, the slope of TPP is negative, which means TPP is falling in this area.

Short Answer. APC is the fraction of total income consumed, while MPC is the fraction of change in income consumed. MPC shows the tendency to consume out of the change in income, whereas MPS denotes the tendency to save out of the change in income.

MPS Is at the Heart of a Manufacturing ERP System

A master production schedule is the link between planning and manufacturing, being used as the basis for calculating the capacity and resources required to fulfill production plans.

Total product is the total amount produced per a set of resources, average product is the average cost per unit produced per set of resources, and marginal product is the cost for the very next unit to be produced in resources.