Average product and marginal product, Microeconomics

Assignment Help:

Average product and marginal product:

Average product (AP) is the output per unit of the variable factor employed. In other words, it is the productivity of the variable factor (VF). It is measured by dividing total product (TP) by amount of variable factor employed. i.e

 

574_Average product and marginal product.png

Average product is measured in respect of a variable factor. Where the variable factor is say labour (L), then it is the average product of labour (APL) or the productivity of labour that we can measure as:

22_Average product and marginal product1.png


Where the variable factor is capital (K), then can measure the average product of capital (APK) or the productivity of capital as:

9_Average product and marginal product2.png


Marginal product is the change in total product resulting from the use of one more (or less) unit of a variable factor. It may also be explained as the rate of change in total product with respect to a variable factor (ΔVF), i.e.

2012_Average product and marginal product3.png


where ? = change. Marginal product is also calculated in respect of variable
factor. The MP of labour (MPL) as:

 

137_Average product and marginal product4.png


Related Discussions:- Average product and marginal product

Mathematical presentation of utility maximisation, Mathematical Presentatio...

Mathematical Presentation of Utility maximisation: Consumer's objective is to maximise her utility by solving UMP. To solve UMP, we set the Lagrange function of the correspond

What do you meant by investment, Q. What do you meant by Investment? In...

Q. What do you meant by Investment? Investment: Investment represents production which isn't consumed though rather is utilized in the production of other additional output. In

Determine the dividend yield and current stock price, The Bloomington Elect...

The Bloomington Electric Company operates in a stable industry and therefore has predictable dividend growth of 8% per year. The most recent annual dividend was paid yesterday in t

What do you meant by financialization, Q. What do you meant by Financializa...

Q. What do you meant by Financialization? Financialization: The trend under neoliberalism through that real production in the economy is accompanied by an increasing degree of

Regression on return from schooling and ability, how to estimate a regressi...

how to estimate a regression model that tests for higher ability individuals get a greater return from schooling

Define the production terminology in short, Define the production terminolo...

Define the production terminology in short. Production Technology: Production is the procedure of transforming inputs to outputs. Characteristically, inputs consist of labor

Workers'' co-operative, Workers' Co-operative: Another form of privat...

Workers' Co-operative: Another form of privatisation is transfer ofownership of a loss-making concern to the workers. Mr. R. Ganpati, formerChairman of the Board of Industria

Describe the price of monopolistic competition, Perfect competition and mon...

Perfect competition and monopoly are rarely found in the real world and thus they do not represent, for the most part, the actual market situations. Therefore, the conclusions whic

Analyze the economic factors, Question 1: Using relevant examples to il...

Question 1: Using relevant examples to illustrate your arguments analyze the different economic impacts of tourism and discuss the different ways in which government can maximi

Taxes, Smoking cigarettes is a leading cause of many diseases

Smoking cigarettes is a leading cause of many diseases

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd