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Small production scale - PowerPoint PPT Presentation

Summary (almost) everything you need to know about micro theory in 30 minutes

Summary (almost) everything you need to know about micro theory in 30 minutes. Production functions. Q=f(K,L) Short run: at least one factor fixed Long run: anything can change Average productivity: AP L =q/L Marginal productivity: MP L =dq/dL Ave prod. falls when MP L <AP L

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Small production scale - PowerPoint PPT Presentation

Summary (almost) everything you need to know about micro theory in 30 minutes