Describe the relationship between average and marginal output of total production

Gross output refers to the input of a certain number of factors of production.

The sum of the outputs obtained.

Average output refers to the average output per unit of factor input.

Marginal yield. It refers to the increase in output by increasing the input of a unit of production factors.

Under the condition that the technical level remains unchanged, if the input of a certain factor of production is continuously increased, the increase in total output will decrease with the increase of the input of the factor of production after reaching a certain point. This is the law of diminishing marginal returns.

The relationship between aggregate, average and marginal production is as follows:

First, with the same amount of capital, the initial aggregate, average, and marginal output all increase as the amount of labor increases. But after each increases to a certain extent, they decrease separately. Therefore, the aggregate production curve, the average production curve, and the marginal production curve all rise first and then fall.

This reflects the law of diminishing marginal returns.

Second, the marginal yield curve intersects the average yield curve at the highest point of the average yield curve. Before the intersection, the average yield is incremental, and the marginal yield is greater than the average yield. After intersection, the average yield is decreasing, and the marginal yield is less than the average yield.

At intersection, the average yield reaches its maximum, and the marginal yield is equal to the average yield.

Third, the total output reaches its maximum when the marginal yield is zero. Later, when the marginal yield is negative, the total output decreases absolutely.

The marginal yield is equal to the derivative of the total yield.

The relationship between the aggregate yield curve and the marginal yield curve: when the marginal yield is greater than zero, the aggregate yield is incremental; When the marginal yield is zero, the total yield reaches its maximum; When the marginal yield is negative, the total yield begins to decrease.

Marginal output refers to the increase in output by increasing the input of a unit of production factor.

Aggregate output refers to the total output provided by the input of a certain factor of production, that is, the total amount of output produced as measured in physical units.

Total production andMarginal yield. Relationship:

Gross output refers to the corresponding factors of production that are being inputted.

, the sum of the actual yields obtained; Whereas, marginal output refers to the increase in output after adding one unit of factor of production.

1. When the marginal output is greater than zero and gradually increases, it means that the total output can be increased by increasing the factors of production.

2. When the marginal output reaches the maximum, it means that the increase in the total output is the largest after increasing the factors of production at this time.

3. When the marginal output begins to decline, it means that the total output can still be increased by increasing the factors of production at this time, but the increase rate decreases.

4. When the marginal output is zero, it means that the total output has reached the maximum value at this time.

5. When the marginal output is less than zero, it means that after increasing the factors of production at this time, the total output will not only not increase but also decrease.

Relationship between total and average production:

Average output is the sum of the output obtained divided by the factors of production input. Relationship between total and average yield: The slope of the line between the point and the origin on the aggregate yield curve is the average yield.

The relationship between marginal yield and average yield: The curve between marginal yield and average yield rises first and then falls, and the intersection point of the two is when the average yield is at its maximum, and then the average yield gradually decreases.

The relationship is that with the increase in the amount of labor, the initial total, average and marginal output are all incremental.

But after each increases to a certain level, it decreases separately. Therefore, the aggregate yield curve, average yield curve and marginal yield curve all rise first and then fall, which reflects the law of diminishing marginal returns.

Gross output refers to a certain factor of production.

The total amount of output provided by inputs, i.e. the total amount of output produced in physical units. Average production is the total output or total output divided by the quantity of an input, i.e. the output per unit of input. The average output of labor is defined as the total output divided by the amount of labor input.

and so on for the average output of other inputs.

Marginal output refers to the marginal cost of increasing the output by one unit of production factors under the condition that the quantity of technology and other input factors of production remains unchanged.

It refers to the total cost of increasing the output of one unit. Any increase in revenue per unit of production cannot be less than the marginal cost, otherwise there will inevitably be a loss; As long as the revenue from an increase in production is higher than the marginal cost, even if it is lower than the total average unit cost, it will increase the profit or reduce the loss. Therefore, calculating the marginal cost plays an important role in making product decisions.

Microeconomics.

The theory is that when the output increases to the point where the marginal cost equals the marginal income, the output that the enterprise gets the most profit from. Early closing.

Aggregate output, average output, marginal output and their relationship first, with the addition of other factors of production, with the increase of one factor of production, the aggregate output curve, the average output curve and the marginal output curve all rise first and then fall. This reflects the law of diminishing marginal output.

Marginal yield in production technology.

In the absence of major changes, in the short term the factors of production can be divided into fixed and variable factors of production. When the fixed factors of production remain unchanged and the variable factors of production increase, the change in output is divided into three stages. At first, as the variable factors of production increase, the marginal output increases as the fixed factors of production are fully utilized, and the total output increases at an increasing rate.

1) Total and average yield.

Geometrically, the average yield is actually the slope of each point on the total yield curve that connects to the origin. Therefore, when APL is in C'When the point reaches the maximum, there must be a steepest tangent on the TPL, tangent to the TPL at point C.

2) Gross vs. marginal yield.

According to the definition of marginal output, it can be seen that the marginal output is equal to the slope of the tangent of the total output at each point. Before point b, the marginal output increases, and the total output increases at an increasing rate. The marginal yield is maximized at point b; From point B to D, the marginal output decreases, and the total output increases at a decreasing rate, reaching a maximum at point D.

Marginal production drops to zero at this point; After point D, the marginal yield is negative and the total output begins to decline.

3) Average yield vs. marginal yield.

The average yield intersects with the marginal yield at c'Dot. c'Previously, the marginal output was greater than the average output, and the marginal output would pull up the average output. c'After that, the marginal yield is less than the average yield, and the marginal yield pulls the average yield downward. The change in marginal yield is always faster than the change in average yield.

First, the aggregate production curve, the average yield curve and the marginal yield.

The curve slopes to the top right first, and then to the right.

Downward slope, i.e. first ascending and then descending separately.

Second, the relationship between the aggregate yield curve and the marginal yield curve: when the marginal yield is large and the grinding state is zero, the aggregate output is incremental; When the marginal yield is zero, the total yield reaches its maximum; When the marginal yield is negative, the total yield begins to decrease.

Third, the relationship between the marginal yield curve and the average yield number curve: the marginal yield curve and the average yield curve intersect at the highest point of the average yield curve. Before the intersection, the marginal yield was greater than the average yield (MP> AP), and the average yield curve was upward. After the intersection, the marginal yield is less than the average yield (MP< AP) and the average yield curve decreases. On intersection, the marginal yield is equal to the average yield (mp = ap).