Production Function: Inputs and Outputs
The Basics
A production function shows the most output from given inputs. It uses the best available technology.
Sign up free for the full concept, practice MCQs and PYQsIndian Economy · Topic 3 of 20
Production, Costs and Market Structures
Theory of the firm: production function, costs, and perfect competition
Short Run and Long Run; Total, Average and Marginal Product
The Basics
A firm can change its inputs only over time. Economists divide this time into two periods.
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The Basics
Marginal product means extra output from one more input unit.
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The Basics
Returns to scale shows how output changes when inputs grow equally.
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The Basics
Total cost is all money spent to make a given output.
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The Basics
The long run is a time period.
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The Basics
Perfect competition is a market with many small buyers and sellers.
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The Basics
A shutdown price is a low price for a firm's product.
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The Basics
Monopoly means only one seller controls the whole market.
Sign up free for the full concept, practice MCQs and PYQsEconomies of Scale and Scope
The Basics
Economies of scale means average cost falls as output grows.
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