Marginal productValue (VMP）It means that the manufacturer adds one unit without changing other conditionsessential factorThe value of the product added by the input.It is a kind ofInputThe marginal product of (that is, the additional output caused by an additional unit of input) multiplied by the price of the product, that is, VMP=P × MP, indicating thatperfect competitionUnder the condition, the profit increased by the increased use of a unit element by the manufacturer.
Marginal product value and product'sMarginal revenueDifference between:
MRIs for yield, VMPYesessential factorIn other words, it is the marginal product value of elements.VMPThe position of the curve depends on MP (L) and P.along withprice level The VMP curve will move upward to the right and downward to the left if the marginal product function of the element rises.
Marginal contribution can generally be divided into the marginal contribution of unit product and the marginal contribution of all products. Its calculation method is:
Marginal contribution per unit product=salesUnit Price－Unit variable cost
Marginal contribution of all products=sales revenue of all products - variable cost of all products
Obviously, the greater the marginal contribution, the betterPricing DecisionFirst, we must ensure that the marginal contribution is not negative. Second, we should consider that the marginal contribution of all products should be sufficient to make up forfixed cost, and there is still some surplus.In special pricing, the marginal contribution remainsPositive numberIt is the bottom line of acceptance or not.
WIPSales processA certain amount of marginal contribution of varieties is first used to make up for enterprisesProduction and operation activitiesThe total amount of fixed costs incurred, after making up all the fixed costs incurred by the enterprise, can constitute the profit of the enterprise if there is any surplus.The following three situations may occur:
(1) When the marginal contribution of the varieties provided is just equal to the total amount of fixed costs incurred, the enterprise can only maintain its capital, that is, no profit or loss.
(2) When the marginal contribution of the varieties provided is less than the total fixed costs incurred, the enterprise will incur losses.
(3) When the marginal contribution of the varieties provided is greater than the total fixed costs incurred, the enterprise will make profits.
Therefore, the essence of the marginal contribution of varieties reflects the contribution that products can make to the profits of enterprises, only whenProduct salesOnly when a certain amount is reached can the marginal contribution of the varieties obtained make up for the total fixed costs incurred and contribute to the profits of the enterprise.
To determine theproduction function The United States has conducted many experiments.One experiment is to estimate the impact of various amounts of irrigation water onArizonaThe influence of cotton yield on medium soil.According to this experiment, the marginal product value of irrigation water when growing cotton in Arizona (if the price of lint per pound is 76 cents or 51 cents).
problem
(1) Which curve is 76 centsCotton priceBased?Which curve is based on the cotton price of 51 cents?
(2) If the price of water is per acre·foot50 dollars, if the price of cotton is 76 cents per pound, how much water is needed for irrigation?
(3) Most studies point out that the demand for irrigation water is price inelastic.If the price of water is 50 per acredollarIs this assertion consistent with the above curve?
(4) If the price of irrigation water has been greatly increasedfarmerDifferent types of irrigation equipment that can store water can be installed.If this happens, the above curve can also represent thedemand curveIs it?Why?
answer
(1) The higher curve A is based on the higher price;The lower curve B is based on the lower price.The marginal product value of any quantity of water is equal to the marginal product of water multiplied bycottonPrice of.The higher the price of cotton, the greater the value of marginal products.
(2) About 60 units of water.
(3) Yes.If the price of water rises from $50 to $100, according to the curve A, the quantity of water required drops from 60 units to 55 units, soArc elasticity of demandAbout
[-（55-60）/57.5]÷[（100-50）/75]=0.13
(4) No.Only all othersInputThe marginal product value curve is for water when the use ofdemand curve。If different equipment is used, the quantity of other inputs used will change.
