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Title: Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm B's ... Post by: PaulKet on Nov 12, 2017 Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm B's production function is q = 1.2 ∗ L0.5 K0.5. If the two firms each hire the same amounts of capital and labor, compare the two firms in terms of APL and MPL.
Title: Re: Suppose firms A and B each make T-shirts. Firm A's production function is q = L0.5 K0.5. Firm ... Post by: desperado2 on Nov 12, 2017 Firm B's APL and MPL will equal 1.2 times the APL and MPL of firm A.
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