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LIQUIDITY: The ease of converting an asset into money (either checking accounts or currency) in a timely fashion with little or no loss in value. Money is the standard for liquidity because it is, well, money and no conversion is needed. Other assets, both financial and physical have varying degrees of liquidity. Savings accounts, certificates of deposit, and money market accounts are highly liquid. Stocks, bonds, and are another step down in liquidity. While they can be "cashed in," price fluctuations, brokerage fees, and assorted transactions expenses tend to reduce their money value. Physical assets, like houses, cars, furniture, clothing, food, and the like have substantially less liquidity.
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                           MARGINAL PRODUCT CURVE: A curve that graphically illustrates the relation between marginal product and the quantity of the variable input, holding all other inputs fixed. This curve indicates the incremental change in output at each level of a variable input. The marginal 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 average product curve. The marginal product curve plays in key role in the economic analysis of short-run production by a firm. The marginal product curve illustrates how marginal product is related to a variable input. While the standard analysis of short-run production relates marginal product to labor, a marginal product curve can be constructed for any variable input. | Marginal Product Curve |  |
The diagram to the right graphically represents the relation between marginal 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 marginal Gargantuan Taco production of each extra worker, measured on the vertical axis, ranges from 0 to 30.The shape of this marginal product curve is worth noting. For the first two workers of variable input, marginal product increases, as each added worker contributes more to the total production of Gargantuan Tacos than previous workers. This increasing marginal product is reflected in a positive slope of the marginal product curve. Beyond the third worker, the marginal product declines, as each added worker contributes less to the total production of Gargantuan Tacos than the previous worker. This decreasing marginal product is seen as a negative slope. The marginal product eventually declines until it reaches zero and even becomes negative. This results as the marginal product curve cuts through the horizontal axis. The hump-shape of the marginal product curve embodies the essence of the analysis of short-run production. The upward-sloping portion of the marginal product curve, up to the third worker, is due to increasing marginal returns. Decreasing marginal returns sets in after the marginal product curve peaks with the second worker and declines for the third worker. In particular, this declining segment of the marginal product curve reflects the law of diminishing marginal returns.
Recommended Citation:MARGINAL PRODUCT CURVE, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: August 13, 2020].
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Today, you are likely to spend a great deal of time at the confiscated property police auction trying to buy either a set of hubcaps or handcrafted decorations to hang on your walls. Be on the lookout for gnomes hiding in cypress trees.
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There were no banks in colonial America before the U.S. Revolutionary War. Anyone seeking a loan did so from another individual.
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"And while the law of competition may be sometimes hard for the individual, it is best for the race, because it ensures the survival of the fittest in every department. " -- Andrew Carnegie, entrepreneur
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