chapter 8 - Chapter 8 When the marginal is more than the...

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Chapter 8 When the marginal is more than the average for the preceding units, the average will increase. When the marginal is equal to the average for the preceding units, the averages will stay the same. When the marginal is less than the average for the preceding units, the average will decrease. Outputs - the goods or services that the firm produces To produce the outputs, the firm must use inputs Variable inputs - inputs whose quantity can be varied during the time period under consideration Fixed inputs - those for which quantity cannot be changed during the time period under consideration Short-run - a period of time over which at least one input is fixed Long-run - all inputs are variable Total product (quantity of output)- the total amount produced by a firm Marginal product of any variable input is defined as the additional output that is produced when one additional unit of the input is used Marginal product of labor= change in total product/change in labor input Average product of labor= total product/labor input
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chapter 8 - Chapter 8 When the marginal is more than the...

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