Examlex
-In the figure, what are the structures labelled as number 4?
Average Product
The ratio of total product to the amount of input used, determined by dividing the overall output by the input quantity.
Average Product
The average amount of output produced per unit of a specific input, like labor or capital, over a certain period.
Diminishing Returns
The principle stating that if one factor of production is increased while others remain constant, the overall returns will initially increase but will eventually decrease after a certain point.
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