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PaulKet PaulKet
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Posts: 488
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6 years ago
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.
Textbook 
Microeconomics: Theory and Applications with Calculus

Microeconomics: Theory and Applications with Calculus


Edition: 4th
Author:
Read 77 times
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The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.

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Replies
wrote...
6 years ago
Firm B's APL and MPL will equal 1.2 times the APL and MPL of firm A.
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