Examlex
Sebastian has drawn a free-body diagram for a ladder of mass m leaning against a frictionless wall. His diagram is shown below. What is his error?
Marginal Product
The additional output resulting from the use of one more unit of a production input, holding other inputs constant.
Variable Input
A variable input is one whose amount can be adjusted in the short term to either raise or lower output levels.
MRP
Acronym for Marginal Revenue Product, which measures the addition to total revenue resulting from the sale of the output produced by one more unit of a variable input.
Haircuts
Often used as an example in economics, referring to a service that cannot be stored, saved, or inventoried, and must be consumed at the point of production.
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