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The Specific Factors Model Is Considered as a Model of General

question 8

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The specific factors model is considered as a model of general equilibrium in the "short-run" because ________.


Definitions:

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a certain period of time.

Workers

Individuals engaged in some form of employment or labor, contributing their skills or effort in exchange for compensation.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while keeping other inputs constant.

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