QUIZ6 - 1 ? What happens to the firms level of profits? 2)....

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Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen Quiz 6 1). (5 points) Suppose a firm is maximizing profits in the short run with variable factor X 1 and fixed factor X 2 . If the price of X 2 goes down, what happens to the firm’s use of X
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Unformatted text preview: 1 ? What happens to the firms level of profits? 2). (5 points) If P MP 1 > W 1 , then should the firm increase or decrease the amount of factor 1 in order to increase profits?...
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This note was uploaded on 08/08/2008 for the course ECON 301 taught by Professor Hansen during the Spring '08 term at Wisconsin.

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