The law explains on the following assumptions.
- All the factors are fixed except labour which is a variable factors.
- All the units of Variable factor have efficiently.
- That is one factors can easily be substituted from another
- The method or technique in production does not change.
- Variation productivity depends on the proportion in which labour is combined with fixed factor.
The law states that as successful unit of the variable factors. Labour is of the added to a fixed amount of another factor.
|
N° of workers employed
|
Total Product(TP)
|
Average Product(AP)
|
Marginal Product(MP)
|
|
1
|
1
|
1
|
1
|
|
2
|
4
|
2
|
3
|
|
3
|
9
|
3
|
5
|
|
4
|
16
|
4
|
7
|
|
5
|
25
|
5
|
9
|
|
6
|
32
|
5.33
|
7
|
|
7
|
36
|
5.14
|
4
|
|
8
|
36
|
4.5
|
0
|
|
9
|
34
|
3.8
|
-2
|
AP=TP/n° of workers
MP=TP2-TP1/N2-N1
MP=3
