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Labor product curves mp - PowerPoint PPT Presentation

Chapter 6

Chapter 6. Production. Topics to be Discussed. The Technology of Production Production with One Variable Input (Labor) Isoquants Production with Two Variable Inputs Returns to Scale. Introduction. Our study of consumer behavior was broken down into 3 steps

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Chapter 6

Chapter 6. Production. Introduction. Production decisions of a firm are similar to consumer decisions Can also be broken down into three steps: Production Technology Describe how inputs can be transformed into outputs Inputs: land, labor, capital and raw materials

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Chapter 6

Chapter 6 Production Introduction Our study of consumer behavior was broken down into 3 steps Describing consumer preferences Consumers face budget constraints Consumers choose to maximize utility Production decisions of a firm are similar to consumer decisions

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Labor product curves mp - PowerPoint PPT Presentation

Chapter 6

Chapter 6

Chapter 6