Unformatted text preview: x if ' denotes a change, then if I write: L TP ' ' that’s the change in Total Production divided by the change in Labor. x It’s the slope of the total production function. x It’s the derivative of the production function with respect to labor input. x It’s the marginal product of labor (MPL). So if you understand derivatives, you’ll understand the course material much better. Ƈ Ƈ Ƈ a few preliminaries – exponents You should recall from your high school algebra classes that when you see an exponent, it simply means multiply the number by itself the number of times indicated by the exponent. x x x x 3 ¡ ¡ Now if you divide both sides of the above equation by x: 2 3 x x x x x x x ¡ ¡ But what if you see the something like: x ? Well, that’s simply equal to: 1 x x x x x 1 2 2 2 4 1 8 1 2 2 2 1 2 2 2 2 2 1 4 1 2 2 1 2 2 2 2 1 2 1 2 1 2 2 2 2 2 1 1 2 2 2 2 4 2 2 2 2 2 2 8 4 2 2 2 2 2 2 16 8 2 2 2 2 2 3 1 2 1 1 2 1 3 2 4 3 ¡ ¡ ¡ ¡ ¡ ¡ Page 17...
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 Fall '10
 willis
 Economics, Derivative, Marginal product, Marginal rate, Marginal concepts, e.g. marginal cost

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