Google
Tuesday 
July 17, 2018 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
ABSOLUTE POVERTY: The amount of income a person or family needs to purchase an absolute amount of the basic necessities of life. These basic necessities are identified in terms of calories of food, BTUs of energy, square feet of living space, etc. The problem with the absolute poverty level is that there really are no absolutes when in comes to consuming goods. You can consume a given poverty level of calories eating relatively expensive steak, relatively inexpensive pasta, or garbage from a restaurant dumpster. The income needed to acquire each of these calorie "minimums" vary greatly. That's why some prefer relative poverty.

Visit the GLOSS*arama


AVERAGE PRODUCT CURVE:

A curve that graphically illustrates the relation between average product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the per unit output at each level of the variable input. The average product curve is one of three related curves used in the analysis of the short-run production of a firm. The other two are total product curve and marginal product curve.
The average product curve illustrates how average product is related to a variable input. While the standard analysis of short-run production relates average product to labor, an average product curve can be constructed for any variable input.

Average Product Curve
Average Product Curve
The diagram to the right graphically represents the relation between average product and the variable input. This particular curve is derived from the hourly production of Super Deluxe TexMex Gargantuan Tacos (with sour cream and jalapeno peppers) as Waldo's TexMex Taco World restaurant employs additional workers. The number of workers, measured on the horizontal axis, ranges from 0 to 10 and the average Gargantuan Taco production per worker, measured on the vertical axis, ranges from 0 to 25.

The shape of this average product curve is worth noting. For the first two workers of variable input, average product increases. This is reflected in a positive slope of the average product curve. After the third worker, the average product declines. This is seen as a negative slope. While average product continues to decline, it never reaches zero nor becomes negative. To do so would require total product to become zero and negative, which just does not happen.

The hump-shape of the average product curve indirectly results from increasing and decreasing marginal returns. The upward-sloping portion of the average product curve, up to the second worker, is indirectly due to increasing marginal returns. The downward-sloping portion of the average product curve, after the third worker, is indirectly due to decreasing marginal returns. and the law of diminishing marginal returns.

<= AVERAGE PRODUCT AND MARGINAL PRODUCTAVERAGE PROPENSITY TO CONSUME =>


Recommended Citation:

AVERAGE PRODUCT CURVE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2018. [Accessed: July 17, 2018].


Check Out These Related Terms...

     | total product | marginal product | average product | total product curve | marginal product curve | production function | law of diminishing marginal returns | marginal returns | production stages |


Or For A Little Background...

     | short-run production analysis | production | production cost | variables | labor | capital | supply | principle | business | economic analysis | marginal analysis | factors of production | microeconomics |


And For Further Study...

     | long-run production analysis | production possibilities | production inputs | production time periods | total product and marginal product | total product and average product | average product and marginal product |


Search Again?

Back to the WEB*pedia


APLS

GREEN LOGIGUIN
[What's This?]

Today, you are likely to spend a great deal of time looking for a downtown retail store wanting to buy either storage boxes for your family photos or a large, stuffed giraffe. Be on the lookout for poorly written technical manuals.
Your Complete Scope

This isn't me! What am I?

Lewis Carroll, the author of Alice in Wonderland, was the pseudonym of Charles Dodgson, an accomplished mathematician and economist.
"God grants victory to perseverance. "

-- Simon Bolivar, South American liberator

R&D
Research and Development
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2018 AmosWEB*LLC
Send comments or questions to: WebMaster