16.15. Two firms together employ 100 units of labor and 100 units of capital. Firm 1 employs...

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16.15. Two firms together employ 100 units of labor and 100 units of capital. Firm 1 employs 20 units of labor and 80 units of capital. Firm 2 employs 80 units of labor and 20 units of capital. The marginal products of the firms are as follows: Firm 1:

Firm 2: Is this allocation of inputs economically efficient?

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Microeconomics

ISBN: 9780470563588

4th Edition

Authors: David Besanko, Ronald Braeutigam

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