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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Microeconomics And Behavior

ISBN: 9780073375946

8th Edition

Authors: Robert Frank, David Colander

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