Principles of Microeconomics / Unit 6 MIC 0512 short lesson, about 20 seconds
Average Product and the Marginal Rule
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The idea
Average product is output per worker, total product over the number of workers. Marginal product above the average pulls it up; below, pulls it down.
In practice
Seventy loaves from three workers is an average of about twenty-three.
Where people slip
The same rule governs every marginal and average pair in this course, including cost, where it decides where the curves cross.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
Builds on
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