Write a 2 page paper, with a reference page that addresses the following:
Explain the production function and discuss why it is important.
Explain diminishing returns to an input and give an example.
Discuss why a firm's cost curve might be different in the short-run versus the long-run.
APA format Times Roman 12
Due on Tuesday January 21 by 5:00 pm central time.
The ebook I am trying to upload is Microecomoics, chpter 11 Behind the Supply Curve:
Inputs and Costs but I do have the powepoint that he used for the seminar, I do no think that would be much help.
In compliance with Brainmass rules this is not a completion of assignment but only background help.
The production function shows the relationship between the amounts of factors used and the amount of output generated per period of time. It shows the relationship between the inputs and outputs. The inputs are land, labor, capital, and organization. The production function relates the physical output of the production to factors of production (inputs). In practice the production function is important because it helps show allocative efficiency in the use of factor inputs. This is important because the producer is interested in getting the maximum output from a set of resources or inputs available to him (Thomas J. Clifton, Edward Shepard, 2004). The producer tries to combine these inputs in an efficient manner so that he obtains maximum desired output of goods. This is important because the production function helps make the choice of how much of a factor of input to the use may be substituted for another. How much of each factor input to use to produce ...
Three economics concepts are explained in a structured manner in this response. The answer includes references used.