What is the intensive margin in economics?

About.com (reference below) defines intensive margin as the degree (intensity) to which a resource is utilized or applied. For example, the effort put in by a worker or the number of hours the worker works. This is contrasted with Extensive Margin.

What is extensive margin of cultivation?

1. Rent in Extensive Cultivation: Extensive cultivation refers to the farming system under which in order to increase the agricultural production, the area under cultivation is extended. ADVERTISEMENTS: Therefore, under extensive cultivation, more output is produced by increasing the quantity of land.

How do you calculate intensive margin?

Calculating intensive and extensive margins

1. Intensive Margin = sum of sales of those products that a firm produce in both periods t and t-1.
2. Extensive Margin = sum of sales of those products that a firm produce in year t or in year t-1, but not in both the periods.

What is extensive and intensive margin?

The concept of extensive margin is also crucial in analyzing world trade. In this context, extensive margin refers to whether a trading relationship exists, whereas intensive margin refers to how much is actually traded in that trading relationship.

What is Labour intensive and Labour extensive?

Key Takeaways. Labor intensive refers to a process or industry that requires a large amount of labor to produce its goods or services. Labor costs encompass all of the costs necessary to secure the human capital necessary to complete work.

What is extensive cultivation in economics?

extensive agriculture, in agricultural economics, system of crop cultivation using small amounts of labour and capital in relation to area of land being farmed. The crop yield in extensive agriculture depends primarily on the natural fertility of the soil, the terrain, the climate, and the availability of water.

What is extensive rent?

Each grade of land is cultivated by using the same unit of labor and capital. Under extensive cultivation, rent is the surplus produced of intramarginal land over marginal land. So, all grades of land which produce more than the marginal land earn rent.

What is intensive and extensive margin?

Extensive margin refers to the range to which a resource is utilized or applied. In this context, extensive margin refers to whether a trading relationship exists, whereas intensive margin refers to how much is actually traded in that trading relationship.

Is hardness extensive or intensive?

Examples of intensive properties include temperature, T; refractive index, n; density, ρ; and hardness of an object, η. By contrast, extensive properties such as the mass, volume and entropy of systems are additive for subsystems.

What does Labour intensive mean?

Labor intensive refers to a process or industry that requires a large amount of labor to produce its goods or services.

What is difference between intensive and extensive cultivation?

Intensive farming is a method of agricultural production that requires a lot of inputs to maximize productivity of a small piece of land. Conversely, extensive farming or agriculture is practiced over large swathes of land, with little to no inputs and produces a lower yield per hectare.

What is an intensive margin?

Intensive margin refers to the degree (intensity) to which a resource is utilized or applied. For example, the effort put in by a worker or the number of hours the worker works. Contrast extensive margin.

What is initial and maintenance margin?

Maintenance margin also sometimes referred to as variation margin is the amount of margin that is needed to maintain a position (remain invested in a trade). Initial margin is always higher than maintenance margin, so for as long as the initial margin is covered you do not have to worry about the maintenance margin.

What is an extensive margin?

Extensive margin refers to the range to which a resource is utilized or applied . For example, the number of people working is one measure that falls under the heading of extensive margin.