L12-15 Flashcards
(34 cards)
1
Q
Intertemporal choice
A
2
Q
A
3
Q
A
4
Q
A
5
Q
A
6
Q
A
7
Q
A
8
Q
A
9
Q
Labour Supply
A
10
Q
A
11
Q
A
12
Q
A
13
Q
A
14
Q
A
15
Q
A
16
Q
A
17
Q
Producer theory short run
A
18
Q
Short run
A
at least 1 factor of production fixed
19
Q
MPL
A
20
Q
APL
A
21
Q
A
22
Q
A
23
Q
A
24
Q
Long run producer theory
A
25
Long run
all factors of production vary
26
Isoquants
possible combinations of factors that generate a given level of output. Assumptions: firm uses factors efficiently and Marginal Product of both factors is positive
27
Gradient of Isoquant
Marginal rate of technical substitution (MRTS). Describes negative change in the units of capital required to keep output constant following a unit increase in labour
28
MRTS =
29
30
Isocost
Possible combinations of inputs that constitute a given total cost C
31
32
33
34
