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Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
Wage Determination Under Perfect Competition 175
curve shis downward to the position of MC. e equilibrium point shis from point E to point Eand
the prot maximizing output increases from OQ to OQ. A prot maximizing rm will, therefore, increase
its output by QQ. e expansion of output requires an additional expenditure on both labour and capital.
e increase in expenditure made by the rm to maximize its output will make the isocost AD shi
upward to JK (Figure 7.3), and the rm nally reaches equilibrium at point E on isoquant I
3
. At equilib-
rium point E, the total demand for labour OL
4
. As Figure 7.3 shows, the additional labour ...
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Publisher Resources

ISBN: 9788131797655