Production: Introduction

In this experiment, subjects must decide how to allocate a fixed amount of labor to two alternative production processes. The impulse to increase the scale of the process with the higher average product results in lower total production, and the optimum occurs where the marginal products are equalized.

Key Concepts:
Production Function
Average Product
Marginal Product
Copyright 2009, Charles Holt, Please report problems and suggestions: veconlab@gmail.com

Vecon Lab - May 19, 2019