ECON 301 Lecture Notes - Lecture 11: Production Function, Substitute Good, Isoquant

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toro90

3 Apr 2023

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Concordia University

Department

Economics

Course

ECON 301

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Firm minimize cost of product given the objective function subject to technological constraints. Technology is the process of the firm converting inputs into output. Cost to production is necessary efficient allocation of resources. Production function the technology that firms takes inputs or what we all factors of production and turns them into output. F(x1,x2,x . ) shows the maximum output which can be produced from the input combination ( x1,x2, ,xn) The possibility that the firm is output inefficient with : Fixed inputs: (x1 => plant and machinery land ) Short run: is a period in which some inputs are fixed. Long run: is a period in which all inputs are variable. Mp1 = dy/dx1 = 1/3 * x1^-2/3 * x2^2/3. Mp2= dy/dx2 = 2/3 * x1^1/3 * x2^-1/3. The mp is diminishing if it becomes smaller as the level of i increase. That is dmpi/dxi = dy/dxi ( dy/dxi) = d^2y / dx1^2 < 0.

Related Questions

The difference between technology and technological change is that:

(i) technology is carried out by firms producing physical goods but technological change is an intellectual exercise in seeking ways to improve production.

(ii) technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

(iii) technology involves the use of capital equipment while technological change requires the use of brainpower.

(iv) technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

plumelk226

The difference between technology and technological change is that:

1. technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

2. technology is carried out by firms producing physical goods but technological change is an intellectual exercise into seeking ways to improve production.

3. technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

4. technology involves the use of capital equipment while technological change requires the use of brain power.

orangewhale173

The difference between technology and technological change is that:

a. technology refers to the processes used by a firm to transform inputs into output while technological change is a change in a firm's ability to produce a given level of output with a given quantity of inputs.

b. technology is carried out by firms producing physical goods but technological change is an intellectual exercise in seeking ways to improve production.

c. technology is product-centered, that is, developing new products with our limited resources while technological change is process-centered in that it focuses on developing new production techniques.

d. technology involves the use of capital equipment while technological change requires the use of brainpower.

coralbeetle694

ECON 301 Lecture Notes - Lecture 11: Production Function, Substitute Good, Isoquant

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