ECON 1010 Study Guide - Marginal Product, Production Function, Variable Cost

• School: University of Manitoba
• Department: Economics
• Course: ECON 1010

Document Summary

The production function production function the relationship between the quantity of inputs a firm uses and the quantity of output it produces. : the total product curve shows the production function graphically. It slopes upward because more wheat is produced as more workers are employed. It also becomes flatter bc the marginal product of labour declines as more and more workers are employed. Marginal product of labour = change in quantity of output produced by. The average product of labour average product : the amount of output produced per unit of an input. = (total quantity of output) / (total quantity of labour employed) All other things equal, as the number of workers employed increases, output rises but the average product of labour falls: bc the marginal product is less than the average produce, the average product is decreasing. : common marginal and average product of labour curves.