What is relation between average product and marginal products?

Question

Answer

Average product means actuall product and margin product means that have idea of rate

Answer

Average product means near the target Marginal product means so far from target

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Productivity is the amount of output made per unit of input applied. In simpler terms, productivity is the calculation of output per labor hour. Productivity covers many different aspects of a business because of the variables used to determine the efficiency of production. Average and marginal productivity are analytical tools used to measure the output of labor in order to evaluate current production ability and improve future capacity.

Answer

Relation between Average Product and Marginal Product
Average product and marginal product are two important concepts in the field of economics that help in understanding the relationship between input and output in the production process.

1. Average Product (AP)
Average product is the total output produced per unit of input. It is calculated by dividing the total output by the total input. Mathematically, it can be expressed as:
$$AP = \frac{Total \: Output}{Total \: Input}$$

2. Marginal Product (MP)
Marginal product is the additional output produced by using one more unit of input. It is calculated by taking the change in total output when one more unit of input is added. Mathematically, it can be expressed as:
$$MP = \frac{Change \: in \: Total \: Output}{Change \: in \: Total \: Input}$$

Relation
The relationship between average product and marginal product is crucial in determining the efficiency of the production process. Here are some key points to understand their relation:
- When marginal product is greater than average product, average product increases.
- When marginal product is less than average product, average product decreases.
- When marginal product is equal to average product, average product remains constant.
- The average product curve reaches its maximum point when marginal product equals average product.
- The average product curve slopes upwards when the marginal product is greater than average product and slopes downwards when the marginal product is less than average product.
In conclusion, understanding the relationship between average product and marginal product is essential for businesses to optimize their production processes and maximize their output efficiency.

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