ECO101H1 Chapter Notes - Chapter 11: Marginal Product, Average Cost, Average Variable Cost
elizabethkandelaki and 40134 others unlocked
98
ECO101H1 Full Course Notes
Verified Note
98 documents
Document Summary
Chapter 11: the supply curve - inputs and costs. A firm is an organization that produces goods or services for sale. A firm"s production function is the relationship between the quantity of inputs a firm uses and the quantity of output it produces, for a given state of the production technology. A fixed input is an input whose quantity is fixed for a period of time and cannot be varied (ie. land). A variable input is an input whose quantity the firm can vary at any time (ie. labour). The long run is the time period in which at least one input is fixed. The short run is the time period in which at least one input is fixed. The total product curve shows how the quantity of output depends on the quantity of the variable input employed, for a given quantity of the fixed input and production technology. o.