The marginal product of labor (MPL), for example, is the amount by which output rises with an additional unit of labor. Of the change in output to the change in the amount of a variable factor. Mathematically, marginal product is the ratio The amount by which output rises with an additional unit of a variable factor is themarginal product of the variable factor. The slope of a total product curve for any variable factor is a measure of the change in output associated with a change in the amount of the variable factor, with the quantities of all otherįactors held constant. The change in output (Δ Q) divided by the change in units of labor (Δ L): The slope of the total product curve for labor equals We measure the slope of any curve as the vertical change between two points divided by the horizontal change between the same two points. The seventh tailor, production begins to decline and the curve slopes downward. ![]() Between 3 and 7 workers, the curve continues to slope upward, but its slope diminishes. Between 0 and 3 units of labor per day, the curve becomes steeper. Notice what happens to the slope of the total product curve in Figure 8.1. These values are then plotted graphically as a The table gives output levels per day for Acme Clothing Company at various quantities of labor per day, assuming the firm’s capital is fixed.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |