54: The production function

Question 1

production function

Answer 1

relationship between quantity of inputs and quantity of outputs produced

Question 2

fixed input

Answer 2

an input whose quantity is fixed for a period of time and cannot be varried

Question 3

variable input

Answer 3

an input whose quantity the firm can change at any time

Question 4

long run

Answer 4

time period in which all inputs can be varied

Question 5

short run

Answer 5

time period during which at least one input is fixed

Question 6

total product curve

Answer 6

shows how the quantity of output depends of the quantity of a variable input, given fixed amounts of all other inputs

Question 7

marginal product

Answer 7

additional quantity of output produced using one more unit of that input

Question 8

slope of total product curve

Answer 8

marginal product = change in quantity / change in input

Question 9

diminishing returns to an input

Answer 9

when an increase in the quantity of a particular input, holding all other inputs fixed, leads to a decline in the marginal product of that input