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f pMP1 >w1, then should the firm increase or decrease the amount of factor 1 in order to increase profits?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 25RQ: In choosing a production technology, how will firms react if one input becomes relatively more...

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6. If pMP1 >w1, then should the firm increase or decrease the amount of factor 1 in order to increase profits?

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