You are given that the marginal product of input X is MPx and that of input Y is MPy, what is the marginal rate of technical substitution of X for Y. (b) Given that the prices of X and Y are Px and Py, what is the condition for the cost minimizing input combination. (c) Explain the difference between the concept of marginal physical product and the concept of returns to scale.
You are given that the marginal product of input X is MPx and that of input Y is MPy, what is the marginal rate of technical substitution of X for Y. (b) Given that the prices of X and Y are Px and Py, what is the condition for the cost minimizing input combination. (c) Explain the difference between the concept of marginal physical product and the concept of returns to scale.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 15SQ
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(a) You are given that the marginal product of input X is MPx and that of input Y is MPy, what is the
(b) Given that the prices of X and Y are Px and Py, what is the condition for the cost minimizing input combination.
(c) Explain the difference between the concept of marginal physical product and the concept of returns to scale.
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