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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