Econ Exam 3

Marginal product

Change in total output (if labor is increasing by 1) OR Change in total output / change in labor (if more than 1)

From the perspective of the​ firm, what is the difference between the short run and the long​ run?

In the short​ run, at least one input is​ fixed, while in the long run all inputs are variable.

In the long run

all factors of production are variable.

The long run is any time period where

all inputs can be changed.

In the long run there

are only variable inputs.

The short run is any time period where

at least one input cannot be changed.

The ____ run is a time period during which at least one input cannot be altered. A typical input that cannot be changed in the short run is a​ firm's _____ .

short plant size

The short run is defined as

the period of time in which at least one factor of production is fixed.

Average Product

total product / # of workers per week

The academic calendar for a university is August 15 through May 15. A professor commits to a contract that binds her to a teaching position at this university for this period. Based on this​ information, the short run for the professor

will be the nine month period between August 15 and May​ 15; any time period longer than this will be long run for her.