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Unformatted text preview: can be derived from the technology. Next, we must determine the cost of producing the output. We must determine the cost of each input (land, labor, capital, mgmt.) and sum them together to determine production cost. To determine profitability, we subtract total cost from total revenue. We would do this for each technology, then choose the technology that results in the highest profit. What we have done here is a simple budgeting exercise....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10