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For example, MPL=?Q/?L.
Average product: The total product (output) divided by the quantity of the variable input (APL=Q/L)
Figure 9.7 (MPL & APL) ? As long as labor commands a positive wage, a manager would never employ the variable input in the region where its marginal product of labor is negative. Also, he would never employ a variable input past the point where the total product curves reaches its maximum value (where MPl=0)?When the MP curve lies above the AP curve, the AP curve must be rising; and when the MP curve lies below the AP curve, the AP curve must be falling. The two curves intersect at the max value of the AP curve...
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