(2) Short Run Production Analysis
Production, Production Function, Total Product, Marginal Product, Diminishing Marginal Productivity, Inputs, Outputs, Fixed Inputs, Variable Inputs, Short Run, Long Run
This introduces the concept of a production function as a transformation of inputs into outputs. The concepts of "short run" and "long run" are introduced, leading to a discussion of "fixed" vs. "variable" inputs. Next the short run production function is introduced, and the concepts of Total, Average and Marginal Products are presented. It concludes with discussion of the concept of Diminishing Marginal Productivity.
Crane, Steven E., "(2) Short Run Production Analysis" (2011). Principles of Microeconomics. Paper 34.
Ability to explain the short run vs. long run time frames, and the differences between fixed and variable inputs. Ability to determine and explain Total, Average, and Marginal Products. Ability to define and explain the causes of Diminishing Marginal Productivity.
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