ECON 3411 Lecture Notes - Lecture 28: Production Function, Marginal Product
Document Summary
Topic: productivity measures: marginal product of an input: marginal product on an input: change in total output attributable to the last unit of an input, marginal product of labor: mpl= q/ l. Measures the output produced by the last worker. Slope of the short-run production function (with respect to labor): marginal product of capital: mpk= q/ k. Measures the output produced by the last unit of capital. When capital is allowed to vary in the short run, mpk is the slope of the production function (with respect to capital). Measures of productivity: consider the following production function when 5 units of labor and. 10 units of capital are combined produce: = (10,5) = 150: compute the average product of labor. units per worker, compute the average product of capital units capital unit. Exercise: ex: q=2kl, and k=k0=1, then q=2l, graph it. Calculate mp, and ap: ex: graph q=(kl)(1/2) and k=k0=4. Guiding the production process: producing on the production function.