Thus far we've only looked at the market for factors but we haven't examined how individual firms behave. After a brief examination of how a profit maximizing firm will hire a single factor of production we'll consider how firms which employ multiple factors make decisions.

Of course it's hard to imagine a firm which uses only one input, but it's not difficult to imagine a short run situation in which a firm is only able to vary the amount of a single input even if it uses many.

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