Question

What is the main difference between average physical and marginal physical product? Give an example of marginal physical property.

Answer 1

Average physical product

The quantity of total units produced per unit of variable input holding other input fixed is called Average physical product(APP)

Formula = TPP(Total physical product)/ no of variable input

APP is found by dividing total physical product by number of variable input.

Marginal physical product

The change in quantity of total physical product resulting from unit change in variable input keeping variable inputs unchanged.

MPP is found by using

MPP_n+1 = TPP_n+1 - TPP_n

Suppose

( Refer to table below.)

n = 1

then

MPP₂ = TPP₂ - TPP₁

   = 30-10

= 20

No of variable input	TPP	APP	MPP
1	10	10 (10/1)	10
2	30	15(30/2)	20 (30-10)
3	60	20(60/3)	30(60-30)
4	76	19(76/4)	16(76-60)
5	70	14(70/5)	-6 (70-76)

ALL THE BEST :)))