econ kopya - soquant is a curve that shows all the possible...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
İsoquant: is a curve that shows all the possible combinations of labor and capital that result in the same amount of production.*Higher isoquant shows higher level of production.*eğri bize sermeyenin yerine ne kadar işçi kullanacağımızı söyler. L.R.E competitive M: tipik firmada karı sıfıra çekmeye çalışır, markette ise denge durumundadır. increase in demand : short run: these profits bring more firms into the industry. M: demand increases cousing the price to rise . Long run: profit are eventually diven back to zero becauseP=ATC. M : increasing supply and lowering price. Decerasing in demand: short run : The lower price brings the firms the loss,these loss couse firms leave the indiutry. M: Demand shift decrease, lowering the price Long run: the lower price eventually bring profits back to zero in the long run dengede. M: cousing supply to decline and the price to rise. Effect on reduction cost: short run: MC fall with improvend technology,*at the lower price, firms are making economic profits;newly firm enter. M: Market supply with lower cost,*cousing supply to shift down by
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/03/2009 for the course INDUSTRIAL IE 307 taught by Professor Arzuakyüz during the Spring '09 term at Atılım Üniversitesi.

Ask a homework question - tutors are online