0
If one worker produces four units and the addition of another worker produces a total yield of 10 units the marginal production of second worker is 2?
Wiki User
∙ 15y ago
Marginal production over the origianl worker is 2. The second worker is actually producing 6, but only 2 over the 4 of the origianl worker.
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Why does the production possibility curve decrease at increasing rate?
As more inputs of production are switched from the production of one good to another, their marginal output is decreasing (see: diminishing returns to capital).
What is the difference between opportunity cost and marginal cost?
opportunity cost refers to the satisfaction of ones want at the expense of another want while marginal cost is the addition to total cost as a result of increasing output by one unit.
What is the difference between marginal rate of substitution and marginal rate of technical substitution?
marginal rate of substitution is the slope of the indifference curve. It is the rate at which the consumer is willing to give up certain units of a good in order to get an additional unit of another good. it is equal to the ration of the Marginal Utilities of the 2 goods. marginal rate of transformation is the slope of the production possibiltiy frontier. it is the rate at which the producer is willing to give up the production of certain units of a good in order to increase the prpduction of the other good by 1 unit ( by shifting the inputs more towards the production of the last good). it is equal to the ratio of the marginal costs of the 2 goods.
What is marginal revenue of technical substitution?
The marginal rate of technical substitution refers to the rate at which one input can be substituted for another input without changing the level of output. It can also be defined as the more complete name for the marginal rate of substitution between factors in a production function, sometimes used to distinguish it from the analogous concept in a utility function.
Saying the marginal costs are greater than the marginal benefits is the same as saying?
Marginal costs and marginal benefits are discussing the conditions for profit maximization. This statement can only have further explanation if it is clarified under circumstantial economic conditions. One of the conditions is that the firm is not a monopoly and that there is competition that keeps the price of the good at a single price. Another condition is that there are diminishing returns to labor and production. This means that resources are scarce for production so it becomes more costly to produce more because there are more constraints to resources and there is a limited labor skill pool. In a competitive market the wage is also assumed to be equal for everyone who is employed to do the same job. Thus, if the marginal costs are greater than the marginal benefits then the profit maximizing equation for a firm or individual is not in balance. The profit maximizing condition for a firm or individual is marginal costs equal marginal benefits. For example in the context of a firm, the marginal costs of producing is the wage it must pay to each extra worker it hires and the benefits are the goods that the worker produces for the firm to sell. Assuming that all workers are given the same wage, the firm should hire as many workers until the marginal revenue the worker produces (Marginal product*price) is equal to the wage. This implies price important because price determines how much revenue the worker makes from the product. If the firm is producing where marginal cost is above marginal benefit the firm is losing money and should get rid of some workers. If the firm has control over the price, like in a monopoly, then the profit maximization condition is a little different. In the case of a monopoly the demand curve is not the same as the marginal revenue curve. This is because in a monopoly the firm has to decrease price in order to sell more of the good because they are the only supplier. Marginal revenue is derived from the demand but the profit maximization condition is still marginal cost equals marginal benefits but marginal benefits does not equal the demand curve.
Why is the equality of marginal revenue to marginal cost essential to profit maximuzation in all of the market structures?
When Marginal Cost is below Marginal Revenue, profit is increasing. When Marginal Cost is above Marginal Revenue, profit is decreasing. Since the goal of firms is to maximise profit, they should produce at a level where the MR of producing another unit is equal to the Marginal Cost of producing another unit. Firms should keep producing until this point because there is a hidden profit in MC. This is because we are not taking into account the Accounting profit.
What is another name for a Marginal Market?
any free market
How many stores do Cadburys have worldwide?
There is 3rd Production Factory in a suburb close to Hobart Tasmania in Australia that produces Chocolate and finished product. There is another in Melbourne Victoria Australia that produces finished product.
What is a one word substitute for addition of extras to a car after manufacture?
The action is to "customize" or install options. (Another word for the production of extras is the "aftermarket.")
What is another term for variable costing?
It May Be Called as "Marginal Cost"
Is another term for variable costing?
It May Be Called as "Marginal Cost"
What expression is another way of saying marginal cost?
additional cost
