lecture 22 - LECTURE 22: EXPERIMENT FIRMS: COSTS OF...

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2010: LECTURE 22 1 LECTURE 22: EXPERIMENT FIRMS: COSTS OF PRODUCTION - Variable Input Curves - Accounting and Managerial Costs Mankiw, Chapter 13
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2010: LECTURE 22 2 Relationships If so many hours are spent To get a certain score what is score? how many hours studying. Curve flattens due to Curve steepens due to Law of Diminishing Law of Diminishing
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2010: LECTURE 22 3 Marginal Product. Marginal Product. As more hours: As more score: - each extra hour - each extra hour gets less productive gets less productive - to produce extra score requires more hours
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2010: LECTURE 22 4 If so many workers To get certain output, how many chairs how many workers Curve flattens due to Curve steepens due to Law of Diminishing Law of Diminishing
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2010: LECTURE 22 5 Marginal Product. Marginal Product. As more workers: As more output - each extra worker - each extra worker gets less productive gets less productive - to produce extra output requires more extra workers
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6 FIRM’S COSTS Cost of firm is cost of inputs. What is the appropriate measure for the cost of capital?
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This note was uploaded on 10/29/2011 for the course ECON 2010 taught by Professor Mertens,wi during the Spring '07 term at Colorado.

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lecture 22 - LECTURE 22: EXPERIMENT FIRMS: COSTS OF...

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