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Production and cost — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsProduction and cost4 Marks
Question
Explain the relationship between Total Product, Average Product and Marginal Product.
✓

Answer

  1. In the beginning Total Product, Average Product and Marginal Product all increase, but Marginal Product > Average Product and Total Product > Marginal Product.
  2. When Marginal Product = 0, Total Product is maximum and constant and Average Product is decreasing.
  3. Thereafter, both Average Product and Marginal Product continue to decline, but Marginal Product < Average Product and Total Product declines at an absolute term.
  4. Marginal Product can be zero and negative but Average Product and Total Product can never be zero.

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