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A firm has two inputs: X and Y. The firm understands these inputs to be substitutable. The firm's standard mix is 2 unit(s) of input
A firm has two inputs: X and Y. The firm understands these inputs to be substitutable. The firm's standard mix is 2 unit(s) of input X for every 12 unit(s) of input B.
- Input X costs $25 per unit
- Input Y costs $6 per unit
The firm's actually used 4,000 total input units, with 1,000 units of input X and 3,000 units of input Y.
What is the firm's mix variance for these inputs?
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