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Isocost v. Isoquant Graph. In the simplest mathematical formulation of this problem, two inputs are used (often labor and capital), and the optimization problem seeks to minimize the total cost (amount spent on factors of production, say labor and physical capital) subject to achieving a given level of output, as illustrated in the graph.
If capital (rather than spousal or community labor) is the chief factor contributing to a large gain in the value of the business and if labor by the spouse not holding title to the business was compensated fairly during the marriage, the Van Camp method will allocate most of the appreciation in value to the titleholder as separate property.
That is, the results show the difference (usually reported in percent change form) between two alternative future states (with and without the policy shock). The process of adjustment to the new equilibrium, in particular the reallocation of labor and capital across sectors, usually is not explicitly represented in such a model.
Sectoral output is the measure of output used in "KLEMS" multifactor measures of productivity, which attempt to account for all direct inputs to production: capital services (K), labor services (L), energy (E), materials purchased (M), and services purchased (S) When calculating labor productivity, a value-added measure of output should be used ...
A change is considered to be Hicks neutral if the change does not affect the balance of labor and capital in the products' production function. More formally, given the Solow model production function = (,), a Hicks-neutral change is one which only changes . [2]
The average product of labor (APL) is the total product of labor divided by the number of units of labor employed, or Q/L. [2] The average product of labor is a common measure of labor productivity. [4] [5] The AP L curve is shaped like an inverted “u”. At low production levels the AP L tends to increase as additional labor is added.
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Labor-power might be seen as a stock which can produce a flow of labor. Labor, not labor power, is the key factor of production for Marx and the basis for earlier economists' labor theory of value. The hiring of labor power only results in the production of goods or services ("use-values") when organized and regulated (often by the "management ...