If and , Then

question 205

Essay

If and , then:

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a variable input, holding all other inputs constant.

Variable Input

An input in the production process that varies with the level of output, such as labor or raw materials.

Marginal Product

The increase in output resulting from a one-unit increase in the use of a particular input, while holding other inputs constant.

Average Product

The output produced, on average, by each unit of a variable input, such as labor or capital, in the production process.