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xeze [42]
3 years ago
7

Fully discuss the shape of the total product curve,and how it relates too the short run production functions

History
1 answer:
Yuliya22 [10]3 years ago
7 0

Answer:

The total product curve describes the total output of a company the short run. It is graphically represented with total product as a function of the variable input and fixed input (labor)

Explanation:

The total product curve is characterized by its S-shape. The economic interpretation of this shape is that when the shape is convex at the lower end, there is increase in production as quantity of labor is strengthened. This enhances specification and efficiency in the company.

At the middle of the curve, the shape is concave suggesting that the decrease rate in production is rising. This implies that, additional quantity of labor leads to less specialization and less efficiency of fixed inputs.

The maximum point of the total product curve shape shows that addition of more number of employees after the concave curve leads to unproductive labor and inefficiency of the fixed inputs. This may eventually affect the production rates to decrease.

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