Firms Flashcards
1
Q
Average Product
A
2
Q
Marginal Product
A
3
Q
Production Function
A
4
Q
What is the similarity between household and firm problems
A
5
Q
Substitutes, describe on Isoquant
A
6
Q
Complements, describe on isoquant
A
7
Q
IsoCost curve
A
All combinations of input that correspond to the same cost level
8
Q
IsoQuant Curve
A
All combinations of input that correspond to the same output level
9
Q
MRTS
A
Marginal Rate of Technical Substitution
10
Q
Law of decreasing marginal returns
A
11
Q
Slope of an IsoCost
A
12
Q
Optimal Choice (firm)
A
13
Q
What curves do you look at: Given a cost level, wanting the highest ouput
A
Isoquant (MRTS)
14
Q
Given an output level, want the lowest cost, what curve to look at
A
IsoCost (-w/r)
15
Q
Increasing Returns to Scale
A
