When marginal productivity is diminishing, what will be TP, MP, AP?
When marginal productivity is diminishing, the total product (TP) will continue to increase, but at a decreasing rate. The marginal product (MP) will begin to decline, indicating that each additional unit of input is providing less output than the previous unit. Finally, the average product (AP) will also start to decline, as the diminishing marginal productivity reduces the average output per unit of input.
When marginal productivity is diminishing, the total product (TP) will continue to increase but at a decreasing rate. The marginal product (MP) will start to decline, and the average product (AP) will eventually start to decline as well.
Here's a step-by-step breakdown:
1. Total Product (TP): TP refers to the total output produced by a certain number of inputs (e.g., labor). When marginal productivity starts diminishing, TP will still increase, but by smaller increments. In other words, the additional output gained from each additional unit of input will be less than before.
2. Marginal Product (MP): MP refers to the additional output gained by one additional unit of input. As marginal productivity diminishes, the MP will begin to decline. This means that each additional unit of input will contribute less to the overall output than the unit before it.
3. Average Product (AP): AP is calculated by dividing the total product (TP) by the number of units of input (e.g., labor). Initially, when MP is greater than AP, AP will increase. However, as MP diminishes, it will eventually become less than AP, causing AP to start declining.
So, when marginal productivity is diminishing, TP will increase, MP will decline, and AP will eventually start declining as well.
When marginal productivity is diminishing, the total product (TP), marginal product (MP), and average product (AP) will have specific characteristics.
1. Total Product (TP):
Total product refers to the total output produced by a given input, such as labor. When marginal productivity is diminishing, TP will continue to increase but at a decreasing rate. This means that additional units of the input will add less and less to the total output.
2. Marginal Product (MP):
Marginal product is the additional output produced by adding one more unit of input. When marginal productivity is diminishing, MP will start to decrease. Initially, as more units of the input are added, MP will increase until it reaches its maximum point. After that, MP will decline, indicating diminishing returns to the input.
3. Average Product (AP):
Average product is the total output divided by the total input. When marginal productivity is diminishing, AP will be lower than the maximum level of MP but still increasing. As marginal productivity diminishes, the additional output produced by each additional unit of input declines, causing the average product to increase at a decreasing rate.
To calculate TP, MP, and AP, you need the data on the quantity of input (e.g., labor) and the corresponding levels of output. The formulas are as follows:
TP = Sum of all outputs
MP = Change in TP / Change in the quantity of input
AP = TP / Quantity of input
By calculating these values and observing the trend, you can determine whether marginal productivity is diminishing or not.