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.