2.23.10 – Lecture Notes, ECON 201

2.23.10 – Lecture Notes, ECON 201 -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
2.23.10 – Lecture Notes, ECON 201 We’ll analyze a real firm in the short-run   at least one input is fixed  The production function for apples on a MI farm can be written like this: Q(apples) = f(labor, fertilizer, tractor time, number and age of trees, etc.) The dependent variable is quantity of output (# of apples) The independent variables are quantities of inputs  FIXED AND VARIABLE INPUTS Fixed Inputs:  - Tractors - Trees Variable Inputs: - Spraying - Labor - Fertilizer  Normal apple trees take 14 years to bear fruit, but MSU made trees that bear fruit in 3 years!  Production Function is a GRAPH of Quantity Output (vertically) v. Labor Hours (horizontally) PART 2  Lots of these decisions are made at the margin MARGINAL PRODUCT OF AN INPUT:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/13/2011 for the course EC 201 taught by Professor Haider during the Spring '10 term at Michigan State University.

Page1 / 2

2.23.10 – Lecture Notes, ECON 201 -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online