Describe the People at the Bottom of the Pyramid and Give

question 280

Essay

Describe the people at the bottom of the pyramid and give an example of how global companies are choosing to serve them.

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Definitions:

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all other inputs constant.

Total Product

The total quantity of output produced by a firm or economy with a given amount of inputs.

Diminishing Returns

An economic principle stating that if one factor of production is increased while others remain constant, the overall returns will eventually decrease after a certain point.

Average Product

The output per unit of a specific factor of production, calculated by dividing total production by the quantity of the employed factor.