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 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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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
