BIOC 212 Chapter Notes - Chapter 5: Coffee Bean, Mangalore Refinery And Petrochemicals Limited, Isoquant

• School: McGill University
• Department: Biochemistry
• Course: BIOC 212
• Professor: Dieter Reinhardt

Document Summary

We will keep it really simple and assume that our example rm uses only two inputs labor (l) and capital (k: basic variations of production function with 2 inputs (l and k). Q = f(l, k: q = al + bk. Linear: q = c + al + bk. Linear plus constant: q = al2 + bk2 + clk. Quadratic: q = alk + bl2k + clk2 + dl3k + elk3. Note: a, b, c, d, and e are constant. A short-run production function: production function with one variable. Average product of labor (apl: the apl measures the productivity of the workforce on average, we de ne the average productivity of labour as the produced output per unit of labour, apl = / Marginal product of labor (mpl: the mpl measures the productivity of the last additional increase in labor. Example : short-run production function: john owns ve machines. He works as a contractor in the aerospace industry.