Question

What does it mean to say that "a change in labor moves us along a given production function?"

Short answer

To say that 'a change in labor moves us along a given production function' means that by changing the labor input (while holding other inputs constant), the output changes, resulting in a movement along the same production curve.

Step-by-step solution

Understanding the Production Function

A production function is a mathematical expression that describes the relationship between inputs (like labor and capital) and the output that is produced. It is usually expressed as: \( Q = f(L, K) \), where \(Q\) is the output, \(L\) is labor and \(K\) is capital.

Recognize what a change in labor means

If there's a change in labor (while all other variables are held constant), this means that the amount of labor employed in production is changing. This could be due to hiring more workers, reducing workforce, increase in work hours, etc.

Explain the movement along the production function

When there's a change in labor, we 'move along a given production function'. This means that we are changing the quantity of output by changing only one input (labor), while keeping others (like capital) constant. As labor increases or decreases, output will consequently increase or decrease, resulting in a movement along the same production curve.