SUMMARY: When MP the AP is rising when MP is lessthan AP. The AP is falling when MP=0 TP is maximum when MP is negative TP is falling.

From the diagram above both  MP and TP are rising at an increasingrate up to the point A where MP is maximum. Before this point fixed factors and under utilized from the sixth worker marginal product is falling but total Product is still rising but at a decreasing rate. Both MP and AP are falling but MP is below the AP-MP  is zero and becames negative when TP is at its maximum.

The relationship between physical input and physical output is called the technical or productive efficiency. It occurs when the firm produces a very high output with very few factors of production. Business operates or entrepreneur are interested in maximum using different between cost and revenue occurs when a firm produces an output with the lowest cost of production.

Input is measured in terms of cost and output in terms of revenue.

There are many different ways of combining  the factors of production to produce any amount of output that will attend economic efficiency. This means the amount of each variable factors to employ depends in the productivity of the factor relative to its cost.