Micro #3

The process of turning inputs
into outputs.
The cost structure of a firm depends on the
nature of the ____________ process

• production

• cost

• sunk

• reverse

the relationship
between the quantity of inputs a firm uses
and the quantity of output it produces

• variable input

• production function

• fixed input

an input whose quantity is
fixed for a period and cannot be varied

• variable input

• production function

• fixed input

an input whose quantity
the firm can vary at any time

The ______ run is the period in which all inputs
can be varied

The _____ run is the period in which at least one
input is fixed

The ____________ curve shows how the
quantity of output depends on the quantity of
the variable input for a given quantity of the
fixed input

the change in output
resulting from a one-unit increase in the amount of
labor input (ΔQ/ΔL)

initially rises as more workers are
hired; then it declines

• Marginal product (of labor)

• the long run

• the short run

• production function

The ____________ of an input is the additional
quantity of output that is produced by using one
more unit of that input.
formula is ΔQ/ΔL

change in quantity of output generated by
one additional unit of labor