The outputs of firms 1 and 2 are given by Q =3L° and Q2 =4L° respectively ,0.6 ,0.6 where the L's stand for labour (measured in hours). If the total labour supply is 350 what would be the total output (Q +Q2) if (a) labour was split equally between the two firms. (b) labour was allocated efficiently between the two firms.

The outputs of firms 1 and 2 are given by Q =3L° and Q2 =4L° respectively ,0.6 ,0.6 where the L's stand for labour (measured in hours). If the total labour supply is 350 what would be the total output (Q +Q2) if (a) labour was split equally between the two firms. (b) labour was allocated efficiently between the two firms.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section7.A: Appendix: A Closer Look At Production And Cost

Problem 1AQ

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