How to find the output elasticity of cost

EP stands for output elasticity, TPP stands for total product output and product increment, and Q stands for variable resource input and resource increment. The calculation formula of output elasticity coefficient is:

EP=MPP/APP

The elastic coefficient of output can be obtained by the ratio of marginal product to average output. According to the quantitative relationship between marginal product and average output, the following conclusions can be drawn:

When EP> 1, that is, MPP & gtAPP shows that the increase of output is greater than the increase of production factors. At this time, if the input of production factors is increased, the average output will continue to increase.

When EP= 1, that is, MPP=APP, it shows that the increase of output equals the increase of production factors, and the average output reaches the highest point.

When EP

When EP= 0, that is, MPP= 0, the transformation effect of production factors is equal to zero, and the total output reaches the highest point.

When EP