the production process quiz 1 Flashcards
1
Q
the theory of the firm
A
the explanation of how the firm makes cost-minimizing production decisions and how its costs varies with its output.
2
Q
the production decision of a firm (3)
A
production technology
costs constrains
input choices
3
Q
production technology
A
knowing what factors of production (inputs) are needed to make your output.
4
Q
cost constraints
A
firms may take into account the prices of the factors of production needed to make your output.
5
Q
input choices
A
given its production technology and the prices of FOP, the firm must choose how much of each input to use in producing it output.
