Microecon: Chapter 6 - Custom Scholars
Home » Flash Cards » Microecon: Chapter 6

# Microecon: Chapter 6

question
production in short run
-capital is fixed
-insert capital amount introduction function to get marginal product of labor
-no change in capital, so no MPK
question
MPL
-change in output based on adding one more unit of labor
-Q2-Q1/L2-L1
-L2-L1 will be one
question
MPK
-change in output from one more unit of capital
-Q2-Q1/K2-K1
-"K2-K1" equals one
question
isoquant
-a curve that shows all the combinations of two inputs, such as capital and labor, that will produce the same level of output
-is the production function
question
marginal rate of technical substitution
-the rate at which a firm is able to substitute one input for another while keeping the level of output constant
-MRTS=MPL/MPK
-straighter isoqaunts show substitutes
-more curved isoquants are complements
question
iso cost line
a curve that shows all of the input combinations that yield the same cost
-c=rk+wL
-cost/rent is the intercept
-slop is -w/r
question
identifying minimum cost
-where isoquant and isocost mett
-where q of isocost and isoquant are equal
-MPK/r=MPL/w
-firms move to where MPK/r=MPL/w, so if one is greater either less capital of labor will be used
question
returns to scale
rate at which output increases as inputs are increased proportionately
-plug 1 for K and L, and get Q, then plug in 2 for K and L, and compare if Q doubled or not
question
cost are minimized when
-the isoquant and isocost are tangent
-MPK/r=MPL/w
1 of 9
question
production in short run
-capital is fixed
-insert capital amount introduction function to get marginal product of labor
-no change in capital, so no MPK
question
MPL
-change in output based on adding one more unit of labor
-Q2-Q1/L2-L1
-L2-L1 will be one
question
MPK
-change in output from one more unit of capital
-Q2-Q1/K2-K1
-"K2-K1" equals one
question
isoquant
-a curve that shows all the combinations of two inputs, such as capital and labor, that will produce the same level of output
-is the production function
question
marginal rate of technical substitution
-the rate at which a firm is able to substitute one input for another while keeping the level of output constant
-MRTS=MPL/MPK
-straighter isoqaunts show substitutes
-more curved isoquants are complements
question
iso cost line
a curve that shows all of the input combinations that yield the same cost
-c=rk+wL
-cost/rent is the intercept
-slop is -w/r
question
identifying minimum cost
-where isoquant and isocost mett
-where q of isocost and isoquant are equal
-MPK/r=MPL/w
-firms move to where MPK/r=MPL/w, so if one is greater either less capital of labor will be used
question
returns to scale
rate at which output increases as inputs are increased proportionately
-plug 1 for K and L, and get Q, then plug in 2 for K and L, and compare if Q doubled or not
question
cost are minimized when
-the isoquant and isocost are tangent
-MPK/r=MPL/w

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.