2. For an economy like the one described above, suppose the price per unit of labor and...
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2. For an economy like the one described above, suppose the price per unit of labor and the price per unit of capital are both equal to $4/hr. Suppose also that in clothing production we have MPLC兾MPKCⴝ 2 and that in food production we have MPLF兾MPKFⴝ Is this economy efficient in production? If not, how should it reallocate its inputs?
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