Production Function

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PRODUCTION FUNCTION

Transcript of Production Function

Page 1: Production Function

PRODUCTION FUNCTION

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Production Function

-is the relationship between Output and Input

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Total ProductAverage Product

Marginal Product

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Additional output obtained by one more unit of input.

Total Product

Average Product

Amount of output obtained from given amount input.

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Marginal Product

Amount of output obtained per unit of input.

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Units of LaborInputs

Total Product Average Product

Marginal Product

1 89 89

2 93 46.5 4

3 95 31.67 2

4 96.67 24.17 1.67

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