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Business
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| Number of pages / Number of words: |
8 / 2211 |
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Examples include electrical power consumption, transportation services, and most raw material inputs. In the short run, a firm’s “scale of operations†determines the maximum number of outputs that can be produced. In the long run, there are no scale limitations.
Total, average, and marginal product
Total Product CurveThe total product (or total physical product) of a variable factor of production identifies what outputs are possible using various levels of the variable input...
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This can be displayed in either a chart that lists the output level corresponding to various levels of input, or a graph that summarizes the data into a “total product curveâ€. The diagram shows a typical total product curve. In this example, output increases as more inputs are employed up until point A...
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