54: The production function Flashcards

1
Q

production function

A

relationship between quantity of inputs and quantity of outputs produced

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2
Q

fixed input

A

an input whose quantity is fixed for a period of time and cannot be varried

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3
Q

variable input

A

an input whose quantity the firm can change at any time

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4
Q

long run

A

time period in which all inputs can be varied

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5
Q

short run

A

time period during which at least one input is fixed

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6
Q

total product curve

A

shows how the quantity of output depends of the quantity of a variable input, given fixed amounts of all other inputs

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7
Q

marginal product

A

additional quantity of output produced using one more unit of that input

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8
Q

slope of total product curve

A

marginal product = change in quantity / change in input

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9
Q

diminishing returns to an input

A

when an increase in the quantity of a particular input, holding all other inputs fixed, leads to a decline in the marginal product of that input

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