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Input Substitution When the Input Price Change
Isoquants and Isocosts and Production Function
The minimum cost combination can be written as:
- Minimum cost for a given output will occur when each dollar of input added to the production process will add an equivalent amount of output.
* Question
- If w = $10, r = $2, and MPL = MPK, which input would producer use more of? Why?
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Determine Optimal Price, Quantity and Economic Profit A firm has a demand function P = 200 – 5Q and cost function: AC=MC=10 and a potential entrant has a cost function: AC=MC
problem solving
Can marginal cost be constant? If so, does this mean that marginal cost are equal to average variable cost?
#questioSuppose the US and Mexico both produce semiconductors and auto parts and the US has a comparative advantage in semiconductors while Mexico has a comparative advantage in au
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