Fill in the blanks. When choosing the levels of two activities, A and B, in order to
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Fill in the blanks. When choosing the levels of two activities, A and B, in order to maximize total benefits within a given budget:
a. If at the given levels of A and B, MB/P of A is__________ MB/P of B, increasing A and decreasing B while holding expenditure constant will increase total benefits.
b. If at the given levels of A and B, MB/P of A is__________ MB/P of B, increasing B and decreasing A while holding expenditure constant will increase total benefits.
c. The optimal levels of A and B are the levels at which __________equals__________.
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Related Book For
Managerial Economics Foundations of Business Analysis and Strategy
ISBN: 978-0078021909
12th edition
Authors: Christopher Thomas, S. Charles Maurice
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