Purchase Solution

Marginal and average productivity: technological innovation

Not what you're looking for?

Ask Custom Question

1. What would be expected to happen to marginal and average productivity if a technological innovation that improves productivity is introduced to the production process?

2. How might diminishing marginal productivity be expected to impact the costs of production in your organization -- If not certain, choose another organization with which familiar (The concept applies to services as well as tangible products)?

Purchase this Solution

Solution Summary

The expert examines marginal and average productivity for technological innovations and the impact on costs.

Solution Preview

Solution - 1

Average & Marginal Productivity

In general, the term "marginal" refers to the extra or new unit. Marginal productivity is the added sum of output that is developed from adding an additional unit of a definite input. The term "average" postulate all units. The average productivity is the entire quantity of the product divided by all input quantity. In general there exists a significant relationship between average and marginal productivity as when marginal productivity is more than the average product, the labor average productivity can be enlarged. When marginal productivity is less than average productivity, the labor average productivity can drop (The Relationship between Marginal and Average and Economies of Scale).

The total output of goods and services in the United States has grown by ten times in the last century. Part of it is due to an increase in the availability of inputs like labor and machinery. ...

Purchase this Solution

Free BrainMass Quizzes
Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media


This tests some key elements of major motivation theories.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Introduction to Finance

This quiz test introductory finance topics.