Chapter 3 공책 정리

Chapter 3 공책 정리

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Chapter 3: National Income: Where It Comes From and Where It Goes What Determines the Total Production of Goods and Services? The factors of production The production function The supply of goods and services Y  =  F ( K, L ) How Is National Income Distributed to the Factors of Production? Factor Prices The Decisions Facing the Competitive Firm Profit = Revenue − Labor Costs − Capital Costs =  PY  −  WL  −  RK To see how profit depends on the factors of production, we use the production function Y = F(K, L) to substitute for Y to obtain Profit =  P*F ( K, L ) −  WL  −  RK . The Firm’s Demand for Factors The marginal product of labor (MPL) is the extra amount of output the firm gets from one extra unit of labor, holding the amount of capital fixed MPL  =  F ( K, L  + 1) −  F ( K, L ) Most production functions have the property of diminishing marginal product: holding the amount of capital fixed, the marginal product of labor decreases as the amount of labor increases
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This note was uploaded on 03/29/2011 for the course ECON 101 taught by Professor Medison during the Spring '11 term at MedU Ohio.

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Chapter 3 공책 정리

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