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4. The graph below shows the production function for a certain firm that uses labor and capital as inputs. The function is dr
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4. The graph below shows the production function for a certain firm that uses labor and capital as inputs. The function is dr

The Marginal Product rises till 10 units of output when the total product of labor is increasing at an increasing rate. After 10 units of labor, the total product increases at a decreasing rate and thus marginal product starts falling. At 20 units of output the marginal product is zero when total product is maximum. When total product starts falling, then marginal product becomes negative.

Average Product of labor increases first when marginal product is increasing and intersects the marginal product curve at the maximum point of AP and then starts falling.

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