Mod 54 Flashcards
1
Q
Production Function
A
- Relationship between the quantity of inputs a firm uses and the quantity of outputs it produces
- Quantity of variable input and quantity of output for a given quantity of fixed input
2
Q
Fixed Input
A
Input whose quantity cannot be varied for a period of time
3
Q
Variable Input
A
Input whose quantity can vary at any time
4
Q
Long Run
A
Time period in which all inputs can be varied
5
Q
Short Run
A
Time period in which at least one input is fixed
6
Q
Total Product Curve
A
- Shows production function graphically
- How the quantity of output depends on the quantity of the variable input for a given quantity of the fixed input
7
Q
Marginal Product of An Input
A
Additional quantity of output produced by using one more unit of that input
8
Q
Marginal Product of Labor Curve
A
Plots each worker’s marginal product
9
Q
Diminishing Returns to Labor
A
Each new worker added to a fixed amount of land contributes less to output than the previous worker
