ECO100 Lecture Notes - Isoquant, Marginal Product, Production Function
Document Summary
The first unit of the course is consumer theory, producer theory The second unit is producer theory, which is where the supply curve comes from The short run is a period of time over which some inputs are fixed and some are variable. in the short run, labor is variable and capital is fixed The long run is the period over which all inputs are variable in the long run. in reality,, in reality,, there"s a whole range of variability The marginal product of labor is the delta in the amount produced for the next unit of labor This is very much like a marginal utility of a good It"s not saying the next worker does n"t help. the next worker helps less than the previous worker. we"re going to focus on the range of production where this is true. Eventually workers will get less productive because there are only so many machines and buildings they can work in
