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Chapter 5 The Production Process and Costs

Productivity Measures: Marginal Product of an Input Marginal Product on an Input: change in total output attributable to the last unit of an input. – Marginal Product of Labor: MP L = ∆Q/ ∆L • Measures the output produced by the last worker. • Slope of the short-run production function (with respect to labor).

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  Cost, Marginal

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