Question
A firm combines two resources, A and B, to produce an output level Q in a purely competitive market.The cost of a unit of A
A firm combines two resources, A and B, to produce an output level Q in a purely competitive market.The cost of a unit of A is $5 and the cost of a unit of B is $12.The marginal revenue product of A is $5 and the marginal revenue product of B is currently $12.What would you recommend that the firm do given this resource combination?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
