Chapter 18 - The Markets For The Factors Of Production Flashcards
1
Q
Diminishing marginal product
A
The property whereby the marginal product of an input declines as a quantity of the input increases
2
Q
Factors of production
A
The inputs used to produce goods and services
3
Q
Marginal product of labour
A
The increase in the amount of output from additional Unit of labour
4
Q
Production function
A
The relationship between the quantity of inputs used to make a good and the quantity of output of that good
5
Q
Value of the marginal product
A
The marginal product of an input times the price of the output
6
Q
Capital
A
The equipment and structures used to produce goods and services
