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Industrial Organisation 2022

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Pregunta:

What does the short run production function look like, and what is the description of each variable?

Autor: Hjalmer Pedersen



Respuesta:

Short run production function: q=f(L,K ̅ )=g(L) In the short run, 1 or more production factors are fixed. Here, there is a bar over K so capital is fixed. Hence, q is a function of L. Both L and K can be fixed.


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