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Profit: Maximization
Profit: Maximization
Maximization
ECC 201 Intermediate Microeconomics Saree Worawisutsarakul
Profits Profits
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Thus: y
high w1 low w1
As w1 increases, the demand y f ( x1 , x2 )
for x1 decreases.
The factor demand curve
must slope downward.
x1
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2) Suppose: p Thus:
Isoprofit line gets flatter. As p increases, the supply
x1 of y increases.
The supply curve must
y slope upward.
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