mr. melkonian

costs/benefits of making small changes

when will they go stale? how many am i selling?

marginal cost = marginal revenue

firm is wasting resources

producing bread?

lots of factors as we discussed

best chance of maximizing profit

most common measure of productivity

particularly in unionized environment

takes into account all costs for making a product

only cost of labor per unit produced

when productivity is increasing faster than cost of production

issue of outsourcing

combination-varies in circumstance

more efficient than if i make it

most work conducted by hand

people work in small shops or homes

market small and local

invest in machines/buildings, labor is more productive

tough to increase production or decrease costs

greater efficiency of some firms when producing large output

some firms can't handle the heat

cost per unit is generally lower