Ecos1501 Study guides, Class notes & Summaries

A. Three measures of productivity, or the relationship between inputs and the output, are total product, average product and marginal product This chapter introduces students to short-run production and cost. In the short-run, all production functions incur diminishing returns when variable inputs are used relative to at least one fixed input, reducing the additional amounts of the output being produced. Diminishing returns in production causes a short-run increase in the marginal cost, as ...