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ECON101 Lecture Notes - Lecture 17: Marginal Product, Variable Cost, Fixed Cost

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indigomouse415
23 Apr 2017
School
University of Alberta
Department
Economics
Course
ECON101
Professor
Gordon Lee

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ECON101 Full Course Notes
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ECON101 Full Course Notes
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Document Summary

Inputs can be varied depending on your production needs. In the long run, all inputs are variable. = operating in the short run. (a quantity of a xed input can"t be changed in the short run) The total amount produced during some time period. Average product (ap) well have one of ap for every type of input (labour, capital, materials) The change in total product resulting from a change in the use of one input holding the quantities of all other inputs constant. What is the contribution of the next additional labour. The more you contribute, the more you add to production, eventually e ciency will decrease. The rm should be operating between the range of l*, l^ to be e cient. Accounting costs = include actual expenditures + depreciation expenses for capital equipment. (the more you use it, the more it loses value, it depreciates) are explicit costs. Economic costs = accounting costs + opportunity costs.

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Related Questions

1) Marginal product of labour is the increase in total product that results from a A) one-unit increase in both the quantity of variable and fixed inputs. B) one-unit increase in the quantity of fixed inputs employed, holding the quantity of the variable inputs constant. 1 percent change in the quantity of labour and the quantity of capital employed. D) one-unit increase in the quantity of labour employed, other inputs remaining the same. E) change in the cost of labour.

1) Marginal product of labour is the increase in total product that results from a A) one-unit increase in both the quantity of variable and fixed inputs. B) one-unit increase in the quantity of fixed inputs employed, holding the quantity of the variable inputs constant. C) 1 percent change in the quantity of labour and the quantity of capital employed. D) one-unit increase in the quantity of labour employed, other inputs remaining the same. E) change in the cost of labour.

10) Marginal product of labour is the increase in total product that results from a A) one-unit increase in the quantity of fixed inputs employed, holding the quantity of the variable inputs constant. B) 1 percent change in the quantity of labour and the quantity of capital employed. C) change in the cost of labour. D) one-unit increase in both the quantity of variable and fixed inputs. E) one-unit increase in the quantity of labour employed, other inputs remaining the same.