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Economics FROM 4 ART

CHAPTER 1 : ECONOMICS OF SCALE

TYPES OF OUTPUT
  1. AVERAGE PRODUCT

It is the output produce by each Worker employed.

AP-TP/n° of workers

  1. MARGINAL PRODUCT

It is the addition output obtained from the additional worker

From the table above maginal product is at its maximum and the fifth worker were marginal product equal to the ninth not because rhe sixth workers inefficient but because the law of diminishing return has set in. Since the fifth factor continue to be fixed in the production process

par Claude Foumtum