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Production in the Short Run

Production in the Short Run. Short-run production. Total physical product ( TPP ). Wheat production per year from a particular farm. Number of workers 0 1 2 3 4 5 6 7 8. TPP 0 3 10 24 36 40 42 42 40. Tonnes of wheat produced per year. Number of farm workers.

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Production in the Short Run

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  1. Production in the Short Run

  2. Short-run production Total physical product (TPP)

  3. Wheat production per year from a particular farm Number of workers 0 1 2 3 4 5 6 7 8 TPP 0 3 10 24 36 40 42 42 40 Tonnes of wheat produced per year Number of farm workers

  4. Wheat production per year from a particular farm Number of workers 0 1 2 3 4 5 6 7 8 TPP 0 3 10 24 36 40 42 42 40 Tonnes of wheat produced per year Number of farm workers

  5. The law of diminishing (marginal) returns A more units of the variable factor are used, there will come a point where additional units of the variable factor will produce less than previous units.

  6. Wheat production per year from a particular farm Maximum output Diminishing returns set in here d TPP Tonnes of wheat produced per year b Number of farm workers

  7. Short-run production Marginal physical product (MPP) = TPP/Qf

  8. Wheat production per year from a particular farm DTPP = 7 DL = 1 MPP = DTPP / DL = 7 TPP Tonnes of wheat per year Number of farm workers (L) Tonnes of wheat per year Number of farm workers (L)

  9. Wheat production per year from a particular farm TPP Tonnes of wheat per year Number of farm workers (L) Tonnes of wheat per year Number of farm workers (L) MPP

  10. Short-run production Average physical product (APP) = TPP/Qf

  11. Wheat production per year from a particular farm TPP Tonnes of wheat per year Number of farm workers (L) Tonnes of wheat per year Number of farm workers (L) MPP

  12. Wheat production per year from a particular farm APP = TPP / L TPP Tonnes of wheat per year Number of farm workers (L) Tonnes of wheat per year APP Number of farm workers (L) MPP

  13. Wheat production per year from a particular farm b Diminishing returns set in here b TPP Tonnes of wheat per year Number of farm workers (L) Tonnes of wheat per year APP Number of farm workers (L) MPP

  14. Wheat production per year from a particular farm d Maximum output d TPP Tonnes of wheat per year b Number of farm workers (L) b Tonnes of wheat per year APP Number of farm workers (L) MPP

  15. Wheat production per year from a particular farm c Slope = TPP / L = APP c d TPP Tonnes of wheat per year b Number of farm workers (L) b Tonnes of wheat per year APP d Number of farm workers (L) MPP

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