Explain how you can calculate average physical product and marginal physical product from information on total physical product and variable input
What will be an ideal response?
Given the information on total physical product and variable input, average physical product can be calculated by dividing total product by the variable input. Marginal physical product is the change in total physical output given a one-unit increase in the variable input, holding all other inputs constant. Hence, it can be computed by dividing a change in total physical output by the corresponding one-unit increase in the variable output.
You might also like to view...
List five major economic activities of government, and give an example of each.
What will be an ideal response?
In a country with a working-age population of 200 million, 140 million people are employed and 20 million are unemployed. The size of the labor force is
A) 200 million. B) 160 million. C) 140 million. D) 20 million. E) 120 million.
When workers boycott a company because it does business with a firm whose employees are on strike, that is a
A) secondary boycott. B) primary boycott. C) strike. D) sympathy strike.
Identify the correct statement about repeated negotiations from the following
a. Patterns in repeated negotiations can persist over time but are usually region-specific. b. The payoff from repeated negotiations is higher than that from negotiations which are unlikely to be repeated. c. Experience can help the parties understand each other's positions when negotiations involve previously unencountered issues. d. The greater the experience of the buyer the higher the benefits he realizes from a repeated negotiation.