prodchoice.19

prodchoice.19 - Econ 100A: Production: Choice (Chapter 19)...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Econ 100A: Production: Choice (Chapter 19) Thomas G. Koch Fall 2008 Thomas G. Koch Production: Choice (19) 1(34) Clickers Turn on your clicker Hit a button Thomas G. Koch Production: Choice (19) 2(34) What to choose Firms should maximize something Subject to another thing Like consumers and preferences + budget Thomas G. Koch Production: Choice (19) 3(34) Profit = n X i =1 p i y i- m X j =1 w j x j p i price of output good i y i amount of output good i w j cost of input j x j amount of input j Revenues - Costs A firm should maximize this Thomas G. Koch Production: Choice (19) 4(34) What is a cost, w j ? Could be wages Could be cost of renting a machine Could be foregone rent Thomas G. Koch Production: Choice (19) 5(34) What a firm chooses It depends If competitive industry, chooses inputs and output subject to technology Takes prices as given Vs. a Monopoly Thomas G. Koch Production: Choice (19) 6(34) Do NFL teams exist in a competitive environment? A Yes B No C Sorta Thomas G. Koch Production: Choice (19) 7(34) Does a farm exist in a competitive environment?...
View Full Document

Page1 / 34

prodchoice.19 - Econ 100A: Production: Choice (Chapter 19)...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online