Question
suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketers is 5 for IBM and 3 for
suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketers is 5 for IBM and 3 for Microsoft. Explain why this outcome violates the condition for efficiency in production and how a voluntary exchange could make both companies better off?
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Foundations of Mathematical Economics
Authors: Michael Carter
1st edition
262531925, 978-0262531924
