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Capital input increases - PowerPoint PPT Presentation

Topic 1 Consumer and Firm Behavior (Part 2)

Topic 1 Consumer and Firm Behavior (Part 2). The Representative Firm. Firms demand labor and supply consumption goods The choices of the firms are determined by i. the available technology and ii. profit maximization Our focus here is on the choices of a single, representative firm.

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Capital input increases - PowerPoint PPT Presentation

Topic 1 Consumer and Firm Behavior (Part 2)