Draw a diagram with marginal product and average productExplain the relationship between marginal product and average product?
Marginal product is any input in the production process is the increase in the quantity of output obtained from on additional unit of the input. Average product is the output produced when one more unit of the variable factor is employed
The relationship is state as:
If labour's marginal product is exceed its average product that means labour's average product will be rising.
Labour's average product will be falling. If labour's marginal product is less than its average product.
If labour's marginal product is equal its average product and the average product will reach the minimum value at the point.
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