prod - Production slide 1 PRODUCTION PRODUCTION PRODUCTION...

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Unformatted text preview: Production slide 1 PRODUCTION PRODUCTION PRODUCTION FUNCTION: The term economists use to describe the technology of production, i.e., the relationship between inputs and the output of a good or service. Production slide 2 There is a production function for every good that shows the maximum output you can get from any quantities of inputs. The production function is the description of the current best technology for making a good. Production functions apply to firms. E.g., MSU has a production function for producing alfalfa. GM has a production function for producing Chevys. Production slide 3 TOTAL PRODUCT CURVE TOTAL PRODUCT CURVE The total product curve shows output as a function of a single variable input, holding all other inputs constant. Production slide 4 The production function for tax returns in a small accounting firm can be written like this: Q(returns) = f(office space, accountants, computers, furniture, supervisors, office supplies, etc.) The dependent variable is quantity of output (number of returns filed in this case)....
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This note was uploaded on 01/05/2012 for the course ECON 201 taught by Professor Brown during the Winter '12 term at BYU.

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prod - Production slide 1 PRODUCTION PRODUCTION PRODUCTION...

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