Learn Before
Marginal Product of Labour
Diminishing Marginal Product Leads to Diminishing Average Product
An intuitive explanation for why average product falls is found in its relationship with marginal product. If the marginal product is diminishing—meaning each additional unit of input adds less to the total output than the average of previous units—then this smaller marginal addition will pull down the overall average. Consequently, a diminishing marginal product causes the average product to diminish as well.
0
1
Tags
Social Science
Empirical Science
Science
Economy
CORE Econ
The Economy 1.0 @ CORE Econ
Ch.1 The Capitalist Revolution - The Economy 1.0 @ CORE Econ
Economics
Introduction to Microeconomics Course
Related
Marginal Product of Labor at a Specific Point on a Concave Production Function
Comparison of Calculus vs. Unit-Based Marginal Product Measurement
Diminishing Marginal Product Leads to Diminishing Average Product
The Condition for a Diminishing Average Product
A company's daily output (Q) is determined by the number of labor hours (h) worked, according to the production function Q(h) = 20h - h². What is the marginal product associated with the 8th hour of labor?
Interpreting Marginal Product Calculations
Comparing Measures of Marginal Output
Evaluating Competing Analyses of Labor Productivity
Distinguishing Marginal Product Measures
Consider a production process where output increases with labor hours, but at a changing rate, represented by a smooth, non-linear curve. The statement 'The extra output produced during the 10th hour of work is exactly equal to the instantaneous rate of production at the 10-hour mark' is correct.
Analyzing Bakery Production Data
Choosing the Right Productivity Measure
A firm's production function, which shows total output based on labor hours, is initially convex (curving upwards like a 'U') and then becomes concave (curving downwards like an 'n'). This means the curve gets progressively steeper up to a certain point of labor input, and then becomes progressively flatter. At which stage of production is the marginal product of labor at its maximum?
Reconciling Productivity Measures