Examlex
Which of the following examples best illustrates the principle of sensory adaptation?
Average Product
It is the output that is produced, on average, by each unit of input in the production process, like labor or machinery.
Production Function
A mathematical relationship that describes how inputs are transformed into outputs in the production process, illustrating the maximum output achievable from a given set of inputs.
Marginal Product
Marginal product is the additional output a firm gains from employing one more unit of input, holding all other inputs constant.
Labor
The human effort, either physical or mental, that is used in the production process to generate goods or services.
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