7 assumptions in specifying a model of short-run cost function

  • firm:1 employs two inputs: labor and capital2 operates in short run period, labor variable input, capital fixed input3 uses inputs to make single product4 operates at given level of technology5 operates at every level of output in the most efficient way6 operates in perfectly competitive input markets, therefore pay for inputs at given market rate7 his underlying short-run production is affected by the law of diminishing return

    Report Place comment
    0
Home / Flashcards / 7-assumptions-in-specifying-model-of-short-run-cost-function