Econ 2010 Unit 3 Test

11 flashcards · Economics · by Elsa Schutfort

1. Production

   process of transforming inputs into output

2. Fixed input

   an input that does not vary with the level of output

3. Fixed input example

   having the light on

4. avoidable fixed input

   input that does not vary with the level of output but can be avoided

5. Sunk input

   input that is irrevocably committed and cannot be recovered

6. variable input

   input that is variable, are clearly avoidable

7. long-run

   a enough time to make all inputs avoidable

8. Average productivity

   Q - total product; x - all units of input Qx\frac{Q}{x}xQ​

9. Marginal Productivity

   increase production because of additional unit of a variable input Q2−Q1x2−x1\frac{Q_2-Q_1}{x_2-x_1}x2​−x1​Q2​−Q1​​

10. The simplest production model is one with

    a single variable input (allotter inputs are assumed to be fixed)

11. Explicit cost

    cost associated with purchasing something from someone else