find total product and averge product in given table :- quantity :-1,2,3,4,5,6,7 and marginal product is given 20,16,12,8,4,0,-4
Answers
Answer :
Quantity Marginal Product Total Product Average Product
1 20 20 20
2 16 36 18
3 12 48 16
4 8 56 14
5 4 60 12
6 0 60 10
7 -4 54 7.7
Explanation :
Total Product (TP) is the summation of Marginal Product (MP).
TPₙ = MP₁ + MP₂ + MP₃ + ........... MPₙ
For example,
TP₂ = MP₁ + MP₂
TP₂ = 20 + 16
TP₂ = 36
Similarly, to find the TP of every quantity, you have to add up all the MP.
Average Product (AP) is the product made by using one more factor.
APₙ = TPₙ / Quantityₙ
For example,
AP₂ = TP₂ / 2
AP₂ = 36 / 2
AP₂ = 18
Similarly, to find AP of every quantity, you have to divide TP by the no. of quantity used.