1.) Total Physical Product and Marginal Physical Product
Total physical product is the amount of output the firm obtains in total from a given quantity of inputs. Marginal revenue product is the increase in total output that results from a one-unit increase in the input quantity. First, discuss the relationship between total physical product and marginal physical product. Then, define marginal revenue product and discuss it relationship to marginal physical product. Lastly, give one example of each from a recent news article.
2.) Input Quantities
The most desirable output quantity for the firm clearly depends on how costs change as output varies. First, discuss the three types of cost curves economists use to display and analyze this information. Then, discuss the marginal product relationship. Lastly, give one example of how costs change as output varies for the firm from a recent news article.
3.) Price, Output and Profit
It is a common misperception that the firm selects a price and a quantity of output that maximize profit. First, discuss why this is a common misperception. Then, discuss the impact activities of other firms in the market competing for a share of total market demand have on a firm. Lastly, give one example of the firm maximizing its profit from a recent news article.