Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
intermediate good final good production function short run fixed inputs variable inputs long run marginal product diminishing marginal product average product cost minimization isoquant marginal rate of technical substitution (MRTSXY) isocost line returns to scale constant returns to scale increasing returns to scale decreasing returns to scale fixed cost learning by doing total factor productivity growth (or technological change) durable good expansion path total cost curve | The rate at which the firm can trade input X for input Y, holding output constant. A good that is bought by a consumer.. Inputs that cannot be changed in the short run. The additional output that a firm can produce by using an additional unit of an input (holding use of the other input constant). A production function for which changing all inputs by the same proportion changes the quantity of output by the same proportion. A good that is used to produce another good. An input cost that does not vary with the amount of output. A production function for which changing all inputs by the same proportion changes output less than proportionately. A good that has a long service life. In production economics, the period of time during which all inputs into production are fully adjustable. The quantity of output produced per unit of input. A curve that shows a firm’s cost of producing particular quantities. A curve that illustrates how the optimal mix of inputs varies with total output. A production function for which changing all inputs by the same proportion changes output more than proportionately. A change in the amount of output in response to a proportional increase in all of the inputs.. Inputs that can be changed in the short run. An improvement in technology that changes the firm’s production function such that more output is obtained from the same amount of inputs. The process by which a firm becomes more efficient at production as it produces more output. A firm’s goal of producing a specific quantity of output at minimum cost. A feature of the production function; as a firm hires additional units of a given input, the marginal product of that input falls. A curve that shows all of the input combinations that yield the same cost. In production economics, the period of time during which one or more inputs into production cannot be changed. A mathematical relationship that describes how much output can be made from different combinations of inputs. A curve representing all the combinations of inputs that allow a firm to make a particular quantity of output. |