Dis6 (2) - Econ 101: Principles of Microeconomics Fall 2009...

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

View Full Document Right Arrow Icon

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

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

Unformatted text preview: Econ 101: Principles of Microeconomics Fall 2009 Discussion Section #6 Handout Concepts Review Production function: describes how various kinds of inputs can be combined to produce one or more products. Marginal product of an input: the additional quantity of output produced by using one more unit of that input. Diminishing returns to an input : when an increase in the quantity of that input, holding the levels of all other inputs fixed, leads to a decline in the marginal product of that input. When MP>AP , AP rises. When MP<AP , AP falls. When MP=AP , AP is at its maximum. 1. Short run is the time interval in which the quantities of some resources are fixed. Long run is the time interval in which the quantities of all resources can be varied. 2. Marginal and Total Cost TC=TFC+TVC ATC=AFC+AVC change in total cost change in quantity of output TC MC Q = = MC must cut through the ATC at the minimum of ATC MC must cut through the AVC at the minimum of AVC....
View Full Document

This note was uploaded on 11/27/2011 for the course ECONOMICS 101 taught by Professor Kelly during the Fall '10 term at Wisconsin.

Page1 / 3

Dis6 (2) - Econ 101: Principles of Microeconomics Fall 2009...

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