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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.
Suppose that demand is downward sloping and supply upward sloping. Subsidies cause dead weight loss despite the fact that: 1)consumer surplus increases. 2)total surplus increases
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