Consider the production possibilities frontier depicted below, which shows the different combinations of guns and roses an

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Consider the production possibilities frontier depicted below, which shows the different combinations of guns and roses an economy can produce when it uses all its inputs efficiently.
Consider the production possibilities frontier depicted below, which shows the

a. If the MRT at point A is 2.0, and the marginal product of labor in the gun industry is 12, what must the marginal product of labor be in the rose industry?
b. If, at point A, the marginal product of capital in the gun industry is 6, what must the marginal product of capital in the rose industry be?

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Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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