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Production Theory

  • Michael R. Hammock
  • J. Wilson Mixon
Chapter
  • 1.6k Downloads

Abstract

This chapter contains six sections. The first considers the nature of production and a production function. The second introduces the equation that we use to illustrate production theory. The third section looks at a specific aspect of that theory, returns to scale. In this section the inputs are used in a fixed proportion, so that the output can be phrased in terms of the employment of a single input. The fourth section shows aspects of production when employment of either input can be varied over wide ranges. The fifth section considers “the short run,” a period during which the employment of only one input can be varied. The final section examines substitution between inputs.

Keywords

Production Function Average Product Marginal Product Employment Level Product Curve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Copyright information

© Springer Science+Business Media, LLC 2013

Authors and Affiliations

  • Michael R. Hammock
    • 1
  • J. Wilson Mixon
    • 2
  1. 1.Department of Economics and FinanceMiddle Tennessee State UniversityMurfreesboroUSA
  2. 2.Berry CollegeMount BerryUSA

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