If Average Product Is Less Than Marginal Product:

The upcoming discussion will update you about the relationship between marginal and average product curves. 6. 2(b) we can see that the mp curve cuts the ap curve at the latter’s maximum point. It is immaterial whether his contribution to output is greater or less than the contribution of the workers hired immediately before him. Relationship between marginal product and average product.

As long as mp is higher than ap, ap increases. At the highest point of ap, i. e. When ap is at its maximum, mp is equal to ap. Sometimes it's helpful to calculate the contribution to the output of the last worker or the last unit of capital rather than looking at the average output over all workers or capital. To do this, economists use marginal product of labor and marginal product of capital. Mathematically, the marginal product of labor is just the. A) the highest value of average product occurs where average product is greater than marginal product. B) when the average product curve is rising, marginal product is less than average product. C) when the average product curve is falling, marginal product is greater than average product.

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