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Average revenue product - PowerPoint PPT Presentation

Chapter 9:

Chapter 9:. Input Use and Demand for Inputs. Key Topics. Derived demand for inputs Revenue concepts related to input use Total revenue product (TRP) Average revenue product (ARP) Marginal revenue product (MRP) Profit-maximizing input level Profit-max input rule (MRP = input P)

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AAEC 2305 Fundamentals of Ag Economics ___________________________

AAEC 2305 Fundamentals of Ag Economics ___________________________. Chapter 6 - Continued. ? Maximization: Input Basis _______________________________________________________________________________________________. Objective is to determine level of input use that will maximize ?.

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Average revenue product - PowerPoint PPT Presentation

Chapter 9:

AAEC 2305 Fundamentals of Ag Economics ___________________________