Competitive Factor Markets Demand for a Factor Input when Only one Input Is variable Assume Two inputs: Capital(K) and Labor(L e Cost of k is r and the cost of labor is w .K is fixed and L is variable Chapter 14 Slide 5Chapter 14 Slide 5 Competitive Factor Markets Assume ◆Two inputs: Capital (K) and Labor (L) ◆Cost of K is r and the cost of labor is w ◆K is fixed and L is variable Demand for a Factor Input When Only One Input Is Variable