L12-15 Flashcards
1
Q
Intertemporal choice
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2
Q
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3
Q
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4
Q
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5
Q
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6
Q
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7
Q
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8
Q
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9
Q
Labour Supply
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10
Q
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11
Q
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12
Q
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13
Q
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14
Q
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15
Q
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16
Q
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17
Q
Producer theory short run
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18
Q
Short run
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at least 1 factor of production fixed
19
Q
MPL
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20
Q
APL
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21
Q
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22
Q
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23
Q
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24
Q
Long run producer theory
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25
Q
Long run
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all factors of production vary
26
Q
Isoquants
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possible combinations of factors that generate a given level of output. Assumptions: firm uses factors efficiently and Marginal Product of both factors is positive
27
Q
Gradient of Isoquant
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Marginal rate of technical substitution (MRTS). Describes negative change in the units of capital required to keep output constant following a unit increase in labour
28
Q
MRTS =
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29
Q
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30
Q
Isocost
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Possible combinations of inputs that constitute a given total cost C
31
Q
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32
Q
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33
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34
Q
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