ECON 102 Lecture Notes - Lecture 17: Variable Cost
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People are willing to make themselves worse off financially b/c fairness matters. The (cid:271)est to the likelihood of (cid:271)ei(cid:374)g treated fairl(cid:455) is to treat other fairl(cid:455) (cid:862)golde(cid:374) rule(cid:863) If fairness matters to consumers it must matter to firms. This is (cid:449)h(cid:455) fir(cid:373)s (cid:449)ill (cid:374)ot their p (cid:449)he(cid:374) there is a ra(cid:374)do(cid:373) i(cid:374)flu(cid:454) i(cid:374) de(cid:373)a(cid:374)d. Goal of every firm is to maximize profit, even not for profit firms. Technology the process a firm uses to turn inputs into outputs (q) Q will never be associated with inputs, outputs only. Factors of production: capital, labor, entrepreneurial skills, raw materials. Te(cid:272)h(cid:374)olog(cid:455) - i(cid:374) the a(cid:271)ility to produce a given q with a given amount of inputs. Positi(cid:448)e te(cid:272)h : shifts firms supply curve to the right, same inputs, more outputs (q, fewer inputs, same outputs (q) Ex: manager sends workers to training seminar to become more effective.
