13894835
Description
Flashcards by Diana Hernandez, updated more than 1 year ago
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Created by Diana Hernandez
over 6 years ago
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| Question | Answer |
| specifies the maximum output that can be produced with a given quantity of inputs | the production function |
| is the total amount of output produced in physical units | total product |
| is the extra output produced by one additional unit of input holding the other inputs constant | Marginal product |
| is the total output divided by the total units of inputs | Average product |
| will be less and less when we add units of inputs while holding the other inputs constant | The law of diminishing returns |
| In this case, the output change is proportional to the change of all of the inputs | Constants Return to Scale |
| its when a balanced increase of all of the inputs leads to a less than proportional increase in the total output | Decreasing returns to scale |
| also called economies of scale | increasing returns to scale |
| In this case output increases more than proportionally to the increase of the inputs. or arise when an increase in all inputs leads to a more than proportional increase in the level of output | Increasing returns to scale |
| is the period where firms can adjust production by changing some production factors such as labor and raw materials | the short run |
| run is the period of time where firms can change all productions factors including capital. | The long run |
| occurs when new engineering knowledge improves production techniques for existing products | process innovation |
| is when new or improved products are introduced in the marketplace | product innovation |
| measures the ratio of the total output to a weighted average of the inputs | productivity |
| is the productivity of only the workers, holding all other inputs constant | labor productivity |
| consider most of the time capital and labor | total factor productivity |
| productivity arise from | economies of scale and technological change |
| is the total amount of cost given a level of production. | The total cost |
| are the costs that are independent to the level of production | The fixed costs |
| are the ones that depend on the level of production | the variable costs |
| . It refers to the cost of the last produced unit | Marginal cost |
| is the total cost divided by the total amount of units produced | The average cost |
| When the marginal cost is below the average cost is below the average cost, the average cost is | decreasing |
| when the marginal cost is over the average cost, the average cost is | increasing |
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