ECON 2300 Study Guide - Marginal Revenue Productivity Theory Of Wages, Fixed Cost, Ferrari F2012
12 Feb 2014
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Economic profit: a firm uses inputs j = 1 ,m to make products i = 1, n; output levels are y1, ,yn. Economic profit: the economic profit generated by the production plan (x1, ,xm,y1, ,yn) is. 11 n n xw mm x1 might be the number of labor units used per hour: and y3 might be the number of cars produced per hour. How do we value a firm: suppose the firm"s stream of periodic economic profits is p0, p1, p2, and r is the rate of interest, then the present-value of the firm"s economic profit stream is. Page 1 of 15: suppose the firm is in a short-run circumstance in which its short-run production function is y = 2: the firm"s fixed cost is and its profit function is. 22 iso-profit line contains all the production plans that provide a profit level $ p iso-profit line"s equation is.
