# week3 - 2/9/2012 6 Supporting factors L and K are called...

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2/9/2012 1 Chapter 05 The Monopoly DWL – Dead Weight Loss Supply & Demand Taxes, Welfare and DWL

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2/9/2012 3 Chapter 03 Production Function and Cost MPK – Marginal Productivity of Capital

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2/9/2012 5 MPL Marginal Product of Labor is more or less like Marginal Product of Capital in term of diminishing nature of the curve. The Production Function Algebraic representation of MPL and MPK Marginal product of labor function As the amount of output increase associated with a small increase in the amount of labor. Marginal product of Capital function As the amount of output increase associated with a small increase in the amount of capital Production Function, MPL, MPK

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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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## This note was uploaded on 02/15/2012 for the course ECON 5300 taught by Professor Ken during the Spring '11 term at Utah Valley University.

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week3 - 2/9/2012 6 Supporting factors L and K are called...

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