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If pMP > wi and you want to increase profits, should you increase, decrease or maintain the level of factor 1? Select one: O a Increase O b. Maintain O. Decrease

If pMP > wi and you want to increase profits, should you increase, decrease or maintain the level of factor 1? Select one: O a Increase O b. Maintain O. Decrease

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If pMP > wi and you want to increase profits, should you increase, decrease or maintain the level of factor 1? Select one: on O a. Increase O b. Maintain O. Decrease A competitive firm produces a product using the function f(z1, 12) = 2x6z,. The factor prices are p = $3 and p2 = $4 and the firm can purchase as much of either factor at the given prices. What is the firm's marginal cost? O a. $2.32 O b. $1.74 Oc $0.58 O d.$1.07
Transcribed Image Text:If pMP > wi and you want to increase profits, should you increase, decrease or maintain the level of factor 1? Select one: on O a. Increase O b. Maintain O. Decrease A competitive firm produces a product using the function f(z1, 12) = 2x6z,. The factor prices are p = $3 and p2 = $4 and the firm can purchase as much of either factor at the given prices. What is the firm's marginal cost? O a. $2.32 O b. $1.74 Oc $0.58 O d.$1.07
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