9. Relationship between TP L , AP L and MP L Land Labor TP L AP L MP L Law of Marg. Returns Stages of Production 1 1 3 3 - Increasing Marg. Returns Stage 1 1 2 7 3.5 4 1 3 33 11 26 1 4 50 12.5 17 Diminishing Marg. Returns Stage 2 1 5 65 13 15 1 6 75 12.5 10 1 7 80 11.43 5 1 8 80 10 0 1 9 78 8.67 -2 Negative Marg. Returns Stage 3 1 10 72 7.2 -6
10. Production Labor TP L maximum TP L AP L MP L MP L = 0 AP L maximum MP L maximum 0 Stage 1 Stage 2 Stage 3 3 Stages of Production Curve in Short Run