J Calculate and Interpret total, marginal, and average product of labor Flashcards

1
Q

For a productin process w/ a fixed amount of capital we, can define the following terms (total product of labor, average product of labor, marginal product of labor)

A

Total product of labor:The output for a specific amount of labor

Average product of labor per worker: The total product of labor / the #workers

Marginal Product of Labor: The addition to the total product of labor from employing one more unit of labor.

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2
Q

Total product measure in analysis

A

Use is limited, does not measure the efficiency of any one firm. Provides info on the output of the firm relative to industry output

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3
Q

Average Product in analysis

A

Measures overall efficiency, not the efficiency of one worker

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4
Q

Marginal Product in analysis

A

A better of measure of individual productivity

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