Production Flashcards
1
Q
A Change in Quantity of Labor = ?
A
Change in L * MP(L)
2
Q
Cobb Douglas b+c < 1
A
Decreasing Returns to Scale
2
Q
MRTS =
A
- dK / dL
3
Q
When MP(L) > AP(L), AP(L) is = ?
A
Increasing
3
Q
Isoquants show ?
A
Constant Quantities produced
4
Q
Decreasing Returns to Scale
A
Output increases at a slower rate than input increases
6
Q
Diminishing Marginal Returns
A
MP(L) are decreasing
7
Q
AP(L) =
A
Q/L
8
Q
Cobb Douglas b+c>1
A
Increasing Returns to Scale
9
Q
Long Run
A
All inputs are variable
10
Q
A Change in Quantity of Capital = ?
A
Change in K * MP(K)
12
Q
Short Run
A
Some inputs are variable
13
Q
Cobb-Douglas Production function = ?
A
Q = a*L^b*K^c a = intercept b =
14
Q
Scaling Cobb-Douglas
A
s^b+c * a * L^b * K^c
15
Q
Increasing Returns to Scale
A
Output increases at a greater rate than input increases
