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Unformatted text preview: picture of production function or the process of productive activity has been presented. The entire process is carried out in 7 different units. The first unit has fixed inputs but no variable inputs; so no output is produced . In the second unit one dose or unit of variable input is applied and the output produced is 4 units. For the third production unit the second unit of variable input is applied and the output is more than double. It has increased from 4 to 11. Marginal output is 7 (11 - 4 = 7) units. For production unit 4, the third unit of variable input is applied and the output increases to 18 units. Marginal output is again 7 units (18 - 11 = 7)....
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- Fall '10
- Input/output, variable input