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Consider Meera's ice-cream shop with: Marginal Product of Capital: 6000 scoops/ice-cream maker Marginal Product of Labour: 4000 scoops/worker Wage rate: $400/week Rental rate of ice-cream
Consider Meera's ice-cream shop with:
Marginal Product of Capital: 6000 scoops/ice-cream maker
Marginal Product of Labour: 4000 scoops/worker
Wage rate: $400/week
Rental rate of ice-cream maker $500/week
Is Meera's ice-cream shop in producer's equilibrium? What is the condition you used to
make this decision? Is she minimizing costs? If the shop is not in producer's equilibrium,
what must Meera do to minimize costs and reach producer's equilibrium
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