Total, average and marginal product
A teaching model — not a real plant’s production function; units are notional.
Diminishing marginal product — the addition shrinks but is still positive, so total output keeps rising
Each extra unit of labour adds some output (marginal product). At first the addition grows, then it shrinks; while still positive, total output keeps rising. Marginal product pulls the average up when above it and down when below, so they meet at the top of the average.
Tangent (slope = MP) Ray (slope = AP) MP AP ★ MP = AP (top of AP)
Bands: increasing diminishing (TP still rising) MP < 0 (TP falling)
Model assumption: TP = 4L + 1.5L² − 0.05L³. The curve shapes and diminishing returns are in the study guide; the cubic and "MP crosses the top of AP" are learning supplements. Diminishing marginal product (labour only, short run) is not decreasing returns to scale (all inputs, long run).
Not in this calculation
Using the example values
Tool: Renuary (CC BY 4.0) · Numbers are examples. Method and limits on the original page.