MGEA01H3 Lecture Notes - Lecture 11: Average Cost, Average Variable Cost, Marginal Product

• School: UTSC
• Department: Economics for Management Studies
• Course: MGEA01H3
• Professor: Michael H O

Document Summary

Production function and tp curve for alec and janet"s farm. Adding a 7th worker leads to an increase in output of only 7 bushels. Mpl= d q / d l (bushels per worker) Adding a 2nd worker leads to an increase in output of 17 bushels. Although the total product curve in the figure slopes upward along its entire length, the slope isn"t constant: as you move up the curve to the right, it flattens out due to changing marginal product of labour. The marginal product of an input is the additional quantity of output that is produced by using one more unit of that input. Here, the first worker employed generates an increase in output of 19 bushels, the second worker generates an increase of 17 bushels, and so on . Total product, marginal product, and the fixed input. Quantity of labour (workers) (a) total product curves (b) marginal product curves.