ECON 101 Chapter 7-8: Producers in Short Run & Long Run
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ECON 101 Full Course Notes
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The italic texts are quoted from the textbook. Saturday, october 29, 2016 i. from other rms - electricity, steel ii. from the nature - land : services of labour - by workers & managers employed, services of physical capital - facilities & machines ii. Intermediate products: all outputs that are used as inputs by other producers in a further stage of production i. they are produced for production of other goods: one kind of resources for other products, factors of production i. > move resources into this industry: economic losses - people are going to leave this industry iv. !5 i. the point that ap reaches the maximum - point of diminishing average productivity. !6: when mp is above ap but at decreasing rate, ap will still increase but in decreasing rate as well, when mp is below the ap and decrease at decreasing rate, ap will decrease. Also called unit cost or acreage cost: atc = tc/q.
