Asked by Katia Ferreira on Jul 28, 2024
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Diminishing marginal productivity implies decreasing total product.
Diminishing Marginal
refers to the principle in economics where each additional unit of input results in a smaller increase in output, commonly applied in the context of production and utility.
Marginal Productivity
The additional output produced as a result of employing one more unit of a factor of production.
Total Product
The total quantity of output produced by a firm with a given amount of inputs during a specific period.
- Understand the difference between diminishing marginal productivity and its effect on total product versus total cost.
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Learning Objectives
- Understand the difference between diminishing marginal productivity and its effect on total product versus total cost.
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