Explain and show relationship among total physical product, average physical product and marginal physical product.
Last Updated on March 7, 2020 by Naeem Javid Muhammad Hassani
Explain and show the relationship among total physical product, average physical product, and marginal physical product.
Average physical product: Total Product divided by units of variable factor determines the average product. If 10 labor produces 100 chairs per week. The average physical product of labor will be 100/10 =10 chairs.
Marginal Physical product. A change in the total product which is brought about by an additional unit of variable factor employed in the production process is called marginal physical product e.g 10 labor in a firm produces 100 chairs per week and if 11 labor is employed, the total output of chairs goes up 110. Thus T. output increases by 10 chairs on the employment of 11th labor. So the M.P.P of 11th labor is 10 chair.
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