ProductionNotes

ProductionNotes - Production Production Function...

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Production Production Function Diminishing Returns AP, MP, TP Costs
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Production Function Mathematical/ numerical expression of the relationship between maximum output and available inputs. Q = f(L,K) Diminishing Returns Marginal Product Additional Q from one more unit of input Δ TP/ Δ L Average Product Average amount of Q produced by each unit of input TP/L
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Marginal Product and Average Product # Labor TP MP AP 0 0 1 40 2 100 3 165 4 200 5 225 6 240 7 245 8 240
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Marginal Product and Average Product # Labor TP MP AP 0 0 0 1 40 40 2 100 60 3 165 65 4 200 35 5 225 25 6 240 15 7 245 5 8 240 -5
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and Average Product # Labor TP MP AP 0 0 ---- ----- 1 40 40 40 2 100 60 50 3 165 65 55 4 200 35 50 5 225 25 45 6 240 15 40 7 245 5 35 8 240 -5 30 At what levels are there increasing returns to labor and at what levels are there decreasing returns to labor? Describe the relationship between the TP and MP. Describe the relationship
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This note was uploaded on 03/24/2010 for the course ECO 113 taught by Professor Briggs during the Fall '07 term at Bryant.

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ProductionNotes - Production Production Function...

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