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Unformatted text preview: 2/9/2012 6 Supporting factors • L and K are called supporting factors in a particular production process if the increase in the employment of one factor raises the marginal product of the other factor. Substitute factors • L and K are called substitue factors in a particular production process if the increase in the employment of one factor decrease the marginal product of the other factor. The cost function 3.1.3 Duality between the production and cost function 3.2 The Demand Function • Elastic / Inelastic / unit elasticity • The elasticity measures how fast quantity demanded adjusts to a small change in price....
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 Spring '11
 ken
 Economics, Monopoly, Supply And Demand, Marginal product, DWL

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