Sunday, July 26, 2015

Chapter 18 Reflection

     My first favorite margin note in this chapter was converting marginal product of labor to show how much a worker can create. This shows that even if one product may not cost much if a worker produces 100 more the revenue greatly increases. Second is finding the value of marginal product by seeing that when output prices change it also changes the value of the marginal product as well as the labor-demand curve shift. I like this comment because it shows that one piece changes all parts of the equation in different ways and when you want to change one thing you really need to be looking at the parts it will affect. Last is that with a diminishing marginal product means that their is a abundant supply and a low marginal product or low price. This shows that when a company makes too many of one product it actually lowers the price of the good.

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