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What Are Technical Standards, Why Are They Important, and How

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What are technical standards, why are they important, and how are they established?


Definitions:

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, while holding all other inputs constant, crucial in understanding production efficiency.

Average Product

The output per unit of input, such as the average amount of goods produced per labor hour.

Total Product

The total output of goods or services produced by a firm in a given period of time.

Marginal Product

The additional output resulting from using one more unit of a particular input, holding all other inputs constant.

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