Microeconomics - 2G03Chapter 6Production and Cost:One Variable Input
Summary
most important assumption to TP(z1)
assumption of diminishing marginal product
beyond quantity of input 1
the slope of TP(z1) begins to get flatter
AP(z1) = TP(z1)/(z1)
Marginal product
MP(z1) = slope of TP(z1)
productions functions
total production function
TP(z1)
determine costs and oppertunity costs
short-run cost minimization
Define production functions
Key Terms
multi-plant firms
short-run average cost
short-run total cost
average fixed cost
fixed cost
short-run marginal cost
average variable cost
variable cost function
average product
diminishing marginal productassumption
free-disposal assumption
marginal product
total product function
long-run cost minimization
variable costs
fixed costs
avoidable costs
sunk costs
oppertunity cost
Cobb-Douglas Productionfunction
variable proportions productionfunctions
Leontief production functions
fixed-proportions productionfunction
production function
technically efficient
input bundle
6.1 The Production Function
Defining the Production Function
