the production process quiz 4 Flashcards
1
Q
factors of production
A
inputs into the production process
2
Q
production function
A
the relationship between the quantity of inputs used to make a good & the quantity of output of that good .
(knowing how much FOP you need to make your output)
3
Q
short run
A
a short period of time in which one or more factors of production can NOT be changed.
ONLY LABOR CAN CHANGE
4
Q
Long run
A
a long period of time in which all factors of production are variable.
5
Q
fixed input
A
production factors that can NOT be changed
ex: land & buildings
6
Q
Variable inputs
A
is a resource of FOP which can be changed in the short run.
