Marginal product and average product-curves relationship

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Reference no: EM1315592

Plot total, marginal, and average product and explain in detail the relationship between each pair of curves.

Explain why marginal product first rises, then declines, and ultimately becomes negative.

What bearing does the law of diminishing returns have on short-run costs? Be specific.

"When marginal product is rising, marginal cost is falling. And when marginal product is diminishing, marginal cost is rising." Illustrate and explain graphically.

Inputs labour

Total Product

Marginal Product

Average Product

0

0

 

 

1

15

15

15

2

34

19

17

3

51

17

17

4

65

14

16.25

5

74

9

14.8

6

80

6

13.33

7

83

3

11.86

8

82

-1

10.25

 

Reference no: EM1315592

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