HCMI 3243 Chapter Notes - Chapter 7: Production Function, Capital Good, Marginal Product
16 Apr 2020
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Initially, increasing marginal productivity: mpn is positive and increasing, next, diminishing marginal productivity sets in, mpn is positive but decreasing, next, mpn is = 0, when total product is maximized, after, mpn is negative. The marginal product curve: marginal productivity first increases with the number of nurse-hours because of synergy and labor specialization and then falls because of the fixed input that exists in the short run. Marginal and average products: average product, apn, total quantity of medical services divided by the total number of nurse hours, apn = q/n, average quantity of medical services produced within an hour, derived from the total product curve. Marginal and average products: average product, apn. Influences the average productivity of the team of nurses. Relation between marginal and average product curves: average productivity rises when marginal productivity exceeds average productivity, average productivity falls when marginal productivity lies below average productivity, marginal productivity equals average productivity when average productivity is maximized.
