total product This is a topic that many people are looking for. bluevelvetrestaurant.com is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, bluevelvetrestaurant.com would like to introduce to you Total Product, Marginal Product, Average Product Key Terms Theory of the Firm. Following along are instructions in the video below:
“Hey. Everybody i hope you re doing well. Today. This is the key term series series of theory of the firm and today.
We re going to look at total marginal product and average product. And see where they fit into our studies of theory of the firm check out this table. I put together for you this is to help you know what exactly the terms that you need to know are for costs in cost revenue and profit okay so today. We re gonna look at total product average product marginal product and that s part of the general terms that you need to know the short term costs definitions or words.
You need definitions for are listed here..
And the long run costs terms that you need to know are listed here. I find this exceptionally helpful so that you understand like where you are in your studies. Okay today we are working right in there alright so total marginal and average product. What does that mean well.
I m gonna say really quickly and this might be repetitive. If you ve seen other videos. But what i want you to focus on are the prefixes here for of total marginal and average these terms repeat themselves the total is simply the total of anything it doesn t matter. What it is okay.
The marginal is the addition of one more thing of whatever..
It is an average is the total amount of those things divided by the number of those things so the best way to think about this is if you wanted to figure out like what the total marginal and average height was of everybody in the in a fourth grade classroom. Let s say there are 10 kids the total height would be if you added up all of their heights boom. And that s how holiday would be collectively the marginal height would be if you added an 11th person. How tall is that person that s the marginal height.
Okay and the average height of all those people of the ten would be to add all of them up and divide by what the number of people in the room. So in theory of the firm total marginal average come up a lot. And what changes is this suffix. I like to think of it as a prefix and a suffix product in this case is product.
So keep that in mind..
It s super helpful so in this case. We re talking about total product. What s total product. It s kind of simple then it s the total quantity of output produced by a firm product is the thing they make if it s mot a cup so if it s coffee cups.
If it s cellphones if it s keys if it s paper that s what they make how many do they make well that s the total okay the marginal product marginal product is the extra or additional output resulting from one additional unit of labour. And this is an important thing marginal product and the product is divided by how many people are actually making it okay so if you added one more person right to your classroom of ten fourth graders and that person were taller the marginal addition that the new student that walked in would be marginally taller than everybody else so that product that person would be taller. If they were shorter would be shorter. Okay an average is just taking that total quantity right and dividing it by the total quantity so in the case of a firm the total quantity of output per unit of labor so for product.
We are always talking or dividing by or to think about it mathematically the denominator is always quantity okay..
I think that should be pretty clear listen. These are the kinds of things that you can do very easily to be successful and to understand how ib economics works. Okay my friends so there you go total product marginal product. Average product sounds complicated.
It isn t you got this good luck in your studies. I hope you found this video to be helpful and we ll talk ” ..
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