Relacionar Columnas ECON 315- SI Versión en línea Activity trail por Vy Do 1 keep on using additional units of an input as long as the added benefit is at least as large as the added cost 2 A firm incrementally increases its use of one input and the addition to output decreases 3 It’s possible for a firm’s output to be produced with the use of only 1 input 4 the labor and capital can be substituted for each other, within limit 5 the labor and capital cannot be substituted for each other 6 Q= 10L^0.3K^0.5 7 Q= 5K + 3L 8 MPK * Price of Output 9 Q/L 10 Q = min{ 5K, 3L} 11 IF MPL/w > MPK/r 12 A firm increases its use of 1 unit incrementally and the addition to output increases APL Optimal input rule An example of COBB-DOUGLAS An example of Leontieff linear production function VMPK Law of Diminishing Marginal Returns An example of Linear Production Function Leontieff function COBB-Douglas Increasing Marginal Returns use more LABOR
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