The production function shows the relationship between the amount of output produced and the inputs used. It demonstrates how total product, average product, and marginal product relate to increasing units of a labor input. Total product is the amount of output from a given amount of input. Average product is the output per unit of input. Marginal product is the additional output from one more unit of input. The table shows these relationships for increasing units of labor input.

1. PRODUCTION FUNCTION

2. Production Function
-is the relationship between Output and Input

3. Average
Product
Total
Product
Marginal
Product

4. Total
Product
Average
Product
Amount of output
obtained from given
amount input.
Additional output
obtained by one more unit
of input.

5. Marginal
Product
Amount of output
obtained per unit of input.

7. Units of Labor
Inputs
Total Product
Average Product Marginal Product
1
89
89
2
93
46.5
4
3
95
31.67
2
4
96.67
24.17
1.67