theory of production

The conversion of factors of production into goods and services

• Productivity

• Outputting

• Specialization

• Production

Period of time when it is possible to vary the quantities of all the factors of production used in the production process

• Long-run 

• Short-run 

• Average-run

•  Past-continuous

Factors that can be altered or changed in the short run or relatively short space of time

• Productive capacity 

• Variable factors 

• Fixed factors 

• Immobile factors

When the marginal product is negative, the total product is ______________.

• decreasing

• positive

• negative

• maximum

If marginal product is equal to average product, then total product is increasing.

• TRUE

• FALSE

The change in the total product resulting from a change in a variable input is marginal product.

• TRUE

• FALSE

Production function shows the relationship between input and output.

• TRUE

• FALSE

In the third of the three stages of production marginal product is positive.

• TRUE

• FALSE

When MP increases, TP will increase at increasing rate.

• TRUE

• FALSE

When MP decreases, TP will increase at decreasing rate.

• TRUE

• FALSE