Econ 3: Chapter:1 Definitions:

Flashcards For

Econ 3:

Chapter 1:

Theory Of the Firm: Objectives,Cost and Revenue

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Fixed Factor Inputs
Factor inputs that do not change as output is increased or decreased. E.g. Offices and and Capital equipment in the short run
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Variable Factor Inputs
Factor Inputs that DO change with output.More of them are employed as production increases and vice versa. E.G. Labour and raw materials
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Short-Run
Period of time in which at LEAST ONE factor input is fixed. The firm can increase output only by adding more variable factor inputs to factor inputs
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Long-Run
Period of time in which NO factor inputs is fixed and therefore can increase or decrease its scale of production by increasing or decreasing its fixed factor inputs
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Total Product (TP)
The QUANTITY of output measu
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Other cards in this set

Card 2

Front

Factor Inputs that DO change with output.More of them are employed as production increases and vice versa. E.G. Labour and raw materials

Back

Variable Factor Inputs

Card 3

Front

Period of time in which at LEAST ONE factor input is fixed. The firm can increase output only by adding more variable factor inputs to factor inputs

Back

Preview of the back of card 3

Card 4

Front

Period of time in which NO factor inputs is fixed and therefore can increase or decrease its scale of production by increasing or decreasing its fixed factor inputs

Back

Preview of the back of card 4

Card 5

Front

The QUANTITY of output measu

Back

Preview of the back of card 5

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