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3 Tutorials that teach Revenue Product: Total, Marginal and Average
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Revenue Product: Total, Marginal and Average

Revenue Product: Total, Marginal and Average

Author: Justin Tapp
Description:

This lesson will explain Product: Total, Marginal, Average, and (Marginal) Revenue

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Tutorial

Notes on "Revenue Product: Total, Marginal and Average"

Terms to Know

Total Product

Quantity of goods/services produced

Marginal Product

The output produced when we add one additional unit of input

Marginal Product of Capital

Additional output generated by adding one more unit of capital

Marginal Product of Labor

Additional output generated by adding one more unit of labor

Average Product

Total output divided by quantity of inputs. Should be the average product of labor, or average product of capital

Diminishing Marginal Product

The marginal product of capital/labor will begin to fall at some point, holding all else constant.

Marginal Revenue Product

Additional sales revenue received from employing another unit of labor/capital