J Calculate and Interpret total, marginal, and average product of labor Flashcards
1
Q
For a productin process w/ a fixed amount of capital we, can define the following terms (total product of labor, average product of labor, marginal product of labor)
A
Total product of labor:The output for a specific amount of labor
Average product of labor per worker: The total product of labor / the #workers
Marginal Product of Labor: The addition to the total product of labor from employing one more unit of labor.
2
Q
Total product measure in analysis
A
Use is limited, does not measure the efficiency of any one firm. Provides info on the output of the firm relative to industry output
3
Q
Average Product in analysis
A
Measures overall efficiency, not the efficiency of one worker
4
Q
Marginal Product in analysis
A
A better of measure of individual productivity
