{"id":2351,"date":"2023-10-02T14:02:09","date_gmt":"2023-10-02T14:02:09","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=2351"},"modified":"2023-10-02T14:07:58","modified_gmt":"2023-10-02T14:07:58","slug":"week-4-ss1-second-term-economics-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-4-ss1-second-term-economics-notes\/","title":{"rendered":"Week 4 – SS1 Second Term Economics Notes"},"content":{"rendered":"

WEEK 4: DEFINITION OF FIRM, PLANT AND INDUSTRY FIRM.
\n<\/strong>FIRM
\n<\/strong>The firm is an independently administered business unit carrying out production, construction, or distribution activities. Examples of firm in Nigeria are Dangote cement, Cadbury Nigeria Plc.
\nPLANT
\n<\/strong>This is the same as the factory. It consists of the tools, equipment, machines and buildings of a business concern. It is a business establishment or the actual place where production is organized. E.g Aladja steel plant, etc.
\nINDUSTRY
\n<\/strong>An industry consists of a group of firms producing broadly similar commodities. Examples are the shoe industry, the transport industry, the cement industry, etc.
\nFACTORS THAT DETERMINE THE SIZE OF A FIRM
\n<\/strong><\/p>\n

    \n
  1. Capital Available\n<\/li>\n
  2. Size of the market\n<\/li>\n
  3. Ability of the entrepreneur\n<\/li>\n
  4. Availability of raw material\n<\/li>\n
  5. Level of technology\n<\/li>\n
  6. Efficiency of management\n<\/li>\n
  7. Policy of the government\n<\/li>\n
  8. Nature of the product\n<\/li>\n
  9. Stage of development\n<\/li>\n<\/ol>\n

    CONCEPT OF TOTAL PRODUCT (TP), AVERAGE PRODUCT (AP) AND MARGINAL PRODUCT (MP)
    \n<\/strong><\/p>\n

      \n
    1. TOTAL PRODUCT (TP): Total product refers to the total quantity of goods produced at a particular time as a result of the use of all the factors of production.\n<\/li>\n<\/ol>\n

      \"\"\/<\/p>\n

      \u00a0Point of diminishing returns
      \ntotal
      \noutput Total product<\/p>\n

      \u00a0
      \n\u00a0 0 unit of labour
      \n\"\"\/\"\"\/\"\"\/
      \n\t\tSymbolically written as TP = AP X Q<\/p>\n

      \u00a0<\/p>\n

        \n
      1. \n
        AVERAGE PRODUCT (AP): Average product is defined as the output per unit of the variable factor (labour or capital) employed. This is obtained by dividing the total output by the number of labour or capital employed.\n<\/div>\n

        \u00a0
        \n\u00a0\"\"\/
        \n\t\t\t\t Y<\/p>\n

        \u00a0
        \n\u00a0 AP<\/p>\n

        \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 AP
        \n Unit of Labour\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X\n<\/li>\n<\/ol>\n

        \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0AP=TP\/Q<\/p>\n

          \n
        1. \n
          MAGINAL PRODUCT (MP): This is the additional product produced as a result of the application of additional unit of a variable factor when all other factors are fixed.\n<\/div>\n

          \"\"\/
          \n\t\t\t\t Y <\/p>\n

          \u00a0\u00a0\u00a0\u00a0\u00a0MP<\/p>\n

          \u00a0
          \n\u00a0
          \n\u00a0
          \n\u00a0
          \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Unit of Labour\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0X<\/p>\n

          \u00a0
          \n\u00a0Symbolically written as MP = CHANGE IN TP\/CHANGE IN VARIABLE FACTOR =
          \nTP1<\/sub> \u2013 TPO<\/sub>
          \n\t\t\t\tQ1<\/sub> \u2013QO<\/sub>\n\t\t\t\t<\/li>\n<\/ol>\n

          \u00a0TOTAL PRODUCT, AVERAGE PRODUCT AND MARGINAL PRODUCT
          \n\"\"\/\"\"\/\"\"\/\"\"\/VARIABLE UNIT\u00a0\u00a0\u00a0\u00a0FIXED FACTOR\u00a0\u00a0\u00a0\u00a0 TOTAL PRODUCT\u00a0\u00a0\u00a0\u00a0AVERAGE PRODUCT\u00a0\u00a0\u00a0\u00a0MARGINAL PRODUCT
          \n\"\"\/ OF LABOUR hectares of land\u00a0\u00a0\u00a0\u00a0(Kg)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(Kg)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(kg)
          \n1\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026
          \n2\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a018\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010
          \n3\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a036\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a018
          \n4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a048\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a012
          \n5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a055\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a011\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07
          \n6\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a060\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a010\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05
          \n7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a060\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a086\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00
          \n8\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a056\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 -4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
          \nRELATIONSHIP BETWEENTOTAL PRODUCT, AVERAGE PRODUCT AND MARGINAL PRODUCT.
          \nThe relationship between total products, average product and marginal product can be demonstrated by a graph. Both TP and MP initially rise. The TP curve remains at maximum point when MP is zero. TP declines after MP = 0 and MP afterwards assumes negative values.<\/p>\n

          \u00a0QUESTIONS<\/p>\n

            \n
          1. Write short note on (a) firm (b) plant (c) industry\n<\/li>\n<\/ol>\n

            \u00a0\"\"\/\"\"\/\"\"\/Tonnes of fertilizer applied\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0total product in bags\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0marginal product
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a00\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01000\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026.
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01100\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0100
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01250\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0150
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a03\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a01500\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0250
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a04\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026..\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a05\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026..\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0250
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a06\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0125
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a07\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02350\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026..
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a08\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02380\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026..
            \n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a09\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a02330\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u2026\u2026..<\/p>\n

            \u00a0
            \n\u00a0
            \n\u00a0
            \n\u00a0
            \n\u00a0<\/p>\n

              \n
            1. What will be the total output of maize when no fertilizer is applied to the land? (2b) Calculate the total product after the application of the following quantities of fertilizer (i) 4 tonnes (ii) 5 tonnes (iii) 6 tonnes (c) calculate the marginal product after the application of the following quantities of fertilizer (i) 7 tonnes (ii) 8 tonnes (iii) 9 tonnes.\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

              WEEK 4: DEFINITION OF FIRM, PLANT AND INDUSTRY FIRM. FIRM The firm is an independently…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,200],"tags":[],"class_list":["post-2351","post","type-post","status-publish","format-standard","hentry","category-posts","category-second-term-ss1-economics"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=2351"}],"version-history":[{"count":1,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2351\/revisions"}],"predecessor-version":[{"id":2352,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/2351\/revisions\/2352"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=2351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=2351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=2351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}