Does it follow that because we observe that the aver-age product of labor is higher for Firm

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Does it follow that because we observe that the aver-age product of labor is higher for Firm 1 than for Firm 2, Firm 1 is more productive in the sense that it can produce more output from a given amount of inputs? Why?

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Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

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