Product Flashcards
1
Q
total product
A
when labour increases total product increases alot, then eventually flattens out
the maximum output that a given quantity of labour can produce
2
Q
marginal product
A
the increase in total product that results from a one-unit increase in the variable input, with all other inputs remaining the same
3
Q
marginal product formula
A
the increase in total product / the increase in the variable employed
4
Q
average product
A
inverse u shaped, the average product of a factor of production
5
Q
average product formula
A
total product / the quantity of the factor employed
6
Q
average product graph
A
inverse u
7
Q
marginal product graph
A
inverse u then downwards sloping linear line
8
Q
what happens when ap and mp intersect
A
max ap
