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Your posts are moderated. Average product and marginal product: Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable factor (VF). It is measured by dividing total product (TP) by amount of variable factor employed.i.e.verage product and marginal product: Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable factor (VF). It is measured by dividing total product (TP) by amount of variable factor employed. i.e.
In this case, the total revenue is $200, or $10*20. The total revenue from producing 21 units is $205. The marginal revenue is calculated as $5, or ($205 - $200)/(21-20). When marginal revenue and the marginal cost of production is equal, profit is maximized at that level of output and price. In terms of calculus, the relationship is stated as: dTR/dQ = dTC/dQ. For example, a toy company can sell 15 toys at $10 each.