ECON 1P91 Lecture Notes - Lecture 2: Sept, Savings Account, Marginal Product
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13 Oct 2016
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ECON 1P91 Full Course Notes
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Long run- change plant size, technological, productivity. Total product or output divided by the variable input. Change in total product when labour is increased by one unit. Mpl= change in tp/ change in labour or change in output/ change in labour. The steeper the slop of tp, the higher the level of tp curve. Value of time spent obtaining a good. Convert time into money wage rate/ hour. What you would have bought with that same money. Costs over and above what would have been spent if you continued to live at home. Costs that are attribute to attendance at university. O. c- what you must give up in order to go to university. Use of owner"s time- you cannot work (or so much) Economic depreciation- buys a car in order to go to school (market value at the beginning. Internet foregone- you use some of your own savings of the period minus market value at the end of the period)
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Related Questions
The law of eventually diminishing marginal returns: (Points : 1)
a. states that each and every increase in the amount of the variable factor employed in the production process will yield diminishing marginal returns.
b. is a mathematical theorem that can be logically proved or disproved
c. is the rate at which one input may be substituted for another input in the production process
d. None of the above
b. the incremental change in total output that can be produced by the use of one more unit of the variable input in the production process c. the percentage change in output resulting from a given percentage change in the amount of the variable input X employed in the production process with Y d. None of the above |
b. the marginal rate of technical substitution c. equal to MPx/MPy d. all of the above e. none of the above |
b. equal to the marginal factor cost of the variable factor times the marginal revenue resulting from the increase in output obtained c. equal to the marginal product of the variable factor times the marginal product resulting from the increase in output obtained d. a and b e. a and c |
b. variable cost c. marginal rate of technical substitution d. total cost e. none of the above |
b. the average product of labor (L) is equal to ?2 c. if the amount of labor input (L) is increased by 1 percent, then output will increase by ?1 percent d. a and b e. a and c |
b. relevant to decisions in which one or more inputs to the production process are fixed c. not relevant to optimal pricing and production output decision facilities d. crucial in making optimal investment decisions in new production facilities e. none of the above |
b. all inputs are considered variable c. some inputs are always fixed d. capital and labor are always combined in fixed proportions |
A linear total cost function implies that: (Points : 1) |
b. average total costs are continually decreasing as output increases
c. a and b
d. none of the above