[英语考试]Week 6 - Competition.ppt

Competition Conclusions of Chapter 5 Conclusions Supply decisions are constrained by the capacity to produce and the costs of using that capacity. In the short run, some inputs (e.g., land and capital) are fixed in quantity. Increases in (short-run) output result from more use of variable inputs (e.g., labor). Conclusions A production function indicates how much output can be produced from available facilities, using different amounts of variable inputs. Every point on the production function represents efficient production. Capacity output refers to the maximum quantity that can be produced