【正文】 tional increase in all inputs z 2 Q 0 t1? G(t z) t G(z) Decreasing returns to scale Proportional increase in all inputs z 2 Q isoquant Q =`Q 0 Take a horizontalsection...to get the isoquant again ? z 2 Q 0 … this gives us our next concept Now take a vertical section... ? The Firm Production Input requirement sets Isoquants Marginal products Optimisation Comparative Statics The Firm and the Market Production function: Concepts ? Pick a technically efficient input vector ? Keep all but one input constant Q= G(z) ? Measure change in output . this input ?G(z) ????zi ____ MPi = Gi(z) = Marginal products z1 Q G(z) z1 Q G(z) z1 Q G(z) possible relationships between output and one input z1 Q G(z) Let39。How to use these slides You will get much more out of the course if you can run the PowerPoint slideshows that have been provided for you. Please take the time to follow through the guidance below. ? All of the slideshows work the same way. ? Take the mouse to the lower left corner of the screen ? There are five icons there: check what they do ? Select the “Slide Show” icon to run the show used in the lecture – advance the show with a left click or “Enter” – rightclick to navigate – exit the show using “Esc” The Firm: Production MicroEconomics 2021/2 Production Optimisation The Firm Comparative Statics The Firm and the