ECON 201 Lecture Notes - Lecture 7: Profit Margin, Lamivudine, Diminishing Returns

• School: Concordia University
• Department: Economics
• Course: ECON 201
• Professor: Ian Irvine

Document Summary

Whe(cid:374) dis(cid:272)ussi(cid:374)g & l (cid:449)e(cid:859)ll assu(cid:373)e sa(cid:373)e le(cid:448)el of te(cid:272)h(cid:374)olog(cid:455) i(cid:374)itiall(cid:455: clusters, externalities, learning by doing, & economies of scope. Production function: a statement of a technological relationship that that specifies how much output can b produced (cid:449)/spe(cid:272)ifi(cid:272) a(cid:373)(cid:859)ts of inputs. Technological efficiency: means that the maximum output produced w/the given set of inputs: efers to there(cid:859)s (cid:374)o waste in the production process. Economically efficient: production structure is the 1 that produces @ least cost: refers to the cost in the production process, technologically efficient is not necessarily economically efficient! Short run: @ least 1 factor of production is fixed usually we consider capital 2 b fixed & labor variable fixed # of machines, fixed space, fixed capital. Long run: all factors of production can b adjusted: varia(cid:271)le a(cid:373)(cid:859)t of (cid:272)apital. Sr & lr both have a given state in technology. Video 2 (8. 2) production in the short run.