Chap006.4 - Profit-Maximizing Firms in Perfectly...

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4 Chapter 6: Perfectly Competitive Supply Slide 19 Profit-Maximizing Firms in Perfectly Competitive Markets ± Concepts of production z Fixed factor of production ² An input whose quantity cannot be altered in the short run. z Variable factor of production ² An input whose quantity can be altered in the short run. Chapter 6: Perfectly Competitive Supply Slide 20 Profit-Maximizing Firms in Perfectly Competitive Markets ± Consider a company that makes glass bottles z Two factors of production ² Labor (variable) ² Capital (fixed) o A bottle-making machine Chapter 6: Perfectly Competitive Supply Slide 21 Employment and Output for a Glass Bottle Maker Total number of employees per day Total number of bottles per day 00 18 0 22 0 0 32 6 0 43 0 0 53 3 0 63 5 0 73 6 2 Chapter 6: Perfectly Competitive Supply Slide 22 Employment and Output for a Glass Bottle Maker Total number of employees per day Additional bottles per day
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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