Question

What is the differences between a total production curve (TPC), marginal production curve (MPC), and an average production curve (APC)?

Answer 1

Refer Explanation section

Explanation:

Discussion is based on the give graph -

Any point on the Total Product curve tells us the total output produced by a given number of variable factors.

OA output is produced by ON number of labourers.

Any point on the Marginal Product curve tells us the contribution made by that unit to the total product.

‘N’th labourer’s contribution to the total output is OB.
BA units were contributed by the other labourers.
Contribution by the Nth labourer + Contribution of the other labourers = Total Product
OB + BA = OA

In other words

OA - Total output
`l_1 -` Contribution of the first labourer
`l_2 -` Contribution of the first labourer
`l_N -` Contribution of the N th labourer

Any point on the Average Product curve tells us how much each unit of variable factor has contributed to the total output on an average.

Average Product × Number of labourers = Total product
OC × ON = OA