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Relation between TP and MP:
Graphically, given the total product curve, MP is the slope of the tangent at any point on the TP curve. This is shown in Figure.
See that
Relation between TP and AP
Given the TP curve, AP is the slope of a ray from the origin to any point on the TP curve.
price effect
How would the price mechanism decide resource allocation in a competitive (free) market? The main issue it to explain how the price mechanism has a signalling, rationing and ince
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