BIOCH498 Lecture Notes - Lecture 8: Cost, Fixed Cost, Opportunity Cost
13 Jun 2015
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What influences a demand for a stock: prices and perceived future prices, earnings and perceived future earnings. Interest rates on corporate and government bonds a. increase interest rate = demand for stock falls (substitutes) Outputs - products that result from production. Inputs - factors that are used in production process. Classifying inputs in 4 categories: land natural resources. Natural capital = inputs provided by nature: labour. Human capital = provided by households: capital. Physical capital = machinery, equipment, buildings and etc. Quantity of input can be changed within a time period. Quantity varies with the amount of output produced: fixed inputs. Quantity of input cannot be changed within a period of time. Short run - time period in which at least one input is fixed. Long run - time period in which all inputs are variable. Change in total product from a change in the use of one input. Holding the quantities of all other inputs constant.
