AP Economics – 10/18/18
I. Bellwork
- Graphing – Section 9 Test
II. Objectives:
- Discuss the importance of the firm’s production function, the relationship between quantity of inputs and quantity of output
- Explain why production is often subject to diminishing returns to inputs
- Use data to construct production functions to determine optimal levels of production
III. Discussion: Production Function Pgs 545-549
- Inputs – Fixed & Variable
- Long Run & Short Run
- Marginal Product = MPL = ChgQ/ChgL
- Law of Diminishing Marginal Returns
IV. Homework
3.1 Production Function on iLearn
Leave a Reply