Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 12 Nov 2017 My Price 5.00

marginal products

Two firms together employ 20 units of labor and 12 units of capital. For Firm 1, which uses 5 units of labor and 8 units of capital, the marginal products of labor and capital are  which uses 15 units of labor and 4 units of capital, the marginal products are  

a) Draw an Edgeworth box for inputs that shows the allocation of inputs across these two firms.

b) Is this allocation of inputs economically efficient? Why or why not? If it is not, identify a reallocation of inputs that would allow both firms to increase their outputs.

 

Answers

Maurice Tutor
(5)
Status NEW Posted 12 Nov 2017 12:11 PM My Price 5.00

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