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Unformatted text preview: input X, holding its use of other inputs constant, eventually the marginal product of input X declines. The marginal product of input X is the additional output produced by using one more unit of input X. Technical Efficiency A firm achieves technical efficiency when it is producing its current quantity of output at the lowest possible cost. The LDR implies that, to achieve technical efficiency: a firm must balance its inputs carefully....
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This note was uploaded on 04/02/2008 for the course ECON 200 taught by Professor Cramer during the Spring '07 term at University of Arizona- Tucson.
- Spring '07
- An Essay on the Principle of Population