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Substituting One Input for Another in Production

Substituting One Input for Another in Production. Lecture III. Elasticity of Scale and Law of Variable Proportions. We continue to develop the economics of production through a ray from the origin.

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496 views • 27 slides

Social interaction

Social interaction. March 7 th , 2002 Boulder, Colorado John Hewitt. 1.0 or 0.5. 1.0. A. C. E. A. C. E. a. c. e. a. c. e. P 1. P 2. P 1 = aA 1 + cC 1 + eE 1 P 2 = aA 2 + cC 2 + eE 2. In matrix form we can write: A 1 P 1 a c e 0 0 0 C 1

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213 views • 17 slides

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Matrix expression - PowerPoint PPT Presentation

Substituting One Input for Another in Production

Social interaction