6.1 Production Function Basics

What is the definition of opportunity cost?

• The explicit outlay of cash for something

• A part of decision making

• All that you give up when you make a decision

• Your second best choice.

Which of the following is the BEST example of an implicit cost?

• The cost of your gas driving to work

• The cost of working if you decide to go to college

• The cost of maintaining your lifestyle

• The cost associated with outlays of cash

What best describes the production function

• Relationship between inputs and quantity of outputs

• Relationship between costs and inputs

• Relationship between marginal analysis and total production

• Relationship between variable and fixed inputs

Which of the following would best describe a FIXED input

• The number of workers a firm hires

• The number of pizzas they are able to produce each day

• The rent the pay each month which stays the same

• The two ovens they have to cook the pieces

What is the vocab term that describes each additional work hired will be less productive than the worker before them?

What is the slope of the total product curve?

• Marginal product

• Average product

• Marginal utility

• Aaverage utility

What happens to the average product when the marginal product is rising?

• AP also rises

• AP falls

True or false: a production function illustrates a short-run situation for a producer.

• True

• False