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13 Cards in this Set
- Front
- Back
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Production |
The process of turning inputs into outputs |
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Production function |
relationship between Q of inputs a firm uses and the Q of outputs it produces |
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Fixed input |
Input whose Q is fixed for a period and cannot be varied |
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Variable input |
Input who’s Q the firm can vary at any time |
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Long run |
Period in which all inputs can be varied |
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Short run |
Period in which at least one input is fixed |
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Total product curve |
Shows how Q of output depends on Q of variable input —for a given Q of the fixed input |
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Marginal product |
Change in output resulting from a one unit increase in labour input |
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Marginal product formula |
Change in Q divided by change in labour |
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Marginal product initially ___ as more workers are hired , then ___ |
Rises, declines |
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Past a certain point, another field worker will be so crowded that his marginal product will be____ than the last workers |
Lower |
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Skip |
Skip |
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Relationship between inputs and outputs is ___, but not ___. Marginal product of labour changed along the production function |
Positive, constant |
