1. The relationship between inputs and output is a producers production function. In the short run, the...
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1. The relationship between inputs and output is a producer’s production function. In the short run, the quantity of a fixed input cannot be varied but the quantity of a variable input can. In the long run, the quantities of all inputs can be varied. For a given amount of the fixed input, the total product curve shows how the quantity of output changes as the quantity of the variable input changes. We may also calculate the marginal product of an input, the increase in output from using one more unit of that input.
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Essentials Of Economics
ISBN: 9781429218290
2nd Edition
Authors: Paul Krugman, Robin Wells, Kathryn Graddy
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