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### Course: AP®︎/College Microeconomics>Unit 3

Lesson 1: The production function

# Total product, marginal product, and average product

The short-run production function describes the relationship between output and inputs when at least one input is fixed, such as out output varies based on the amount of labor used. We can use this production function to find the total product of labor, the marginal product of labor, and the average product of labor.

## Want to join the conversation?

• How did you come up with the total gallons?
• How did you come up with the second column Total Products (TP)?
• How did you get the values for TP- Total Product?
• It's just an example, it would be given in a problem.
You wouldn't have to figure it out, it's just a fact.
(1 vote)
• Now, then what are the solutions to diminishing marginal returns?
One can be to increase my ice cream parlor space or other factors of production. But, what alternative solutions would work best?
-Just to increase my space?
-Or, to hire fewer workers?
-Or, just to stop hiring workers when reaching maximum output?
-Or, the marginal analysis would work well?

And, why does any of the solutions make sense?
(1 vote)
• I mean there is minor factors that can reduce slightly the diminishing marginal returns law, however it's impossible to completely solve it. All the law of diminishing returns does is express the fact that, once a certain level of consumption is paased, the next unit will produce less value than the previous one. This both objectively and subjectively true.

Utility/ productivity will not remain constant eternally, a producer can only try to produce at a optimum level, in which he won't lose money or receive a smaller percentage in return. None of your options are incorrect, they'll help to invest inputs more wisely, but won't solve diminishing marginal returns, since it's an effect opon production, rather than just being a problem to solve
(1 vote)
• I have seen examples in my book which show that first marginal product increases and then it decreases. But Sal is saying another thing
(1 vote)
• can the value of the AP be a decimal?
(1 vote)
• Sure! It can also be a fraction. I 3 workers make 10 products, the average product would be 10/3 products per worker.
(1 vote)
• anyone can help me to give a link to learn it more. Cause i still get stucked with my practice and i dont know the concept. I can't understand a whole of this. Maybe because the video was a little

maybe youtube or else, thx before
(1 vote)
• In the following exercise, they say that MPL equals APL, then the APL is at its peak. However, the APL has not yet reached its peak if adding more workers increases APL. Can someone please explain this statement?
(1 vote)
• In the following exercise, they show a graph of MPL and APL (overlapped) versus the quantity of labor. Can someone tell me how this graph is derived?
(1 vote)