Suppose the society's preferences (w) for quantity (q) and variety (n) can be categorized by the following equation: w = 4qn The economy has 200 units of input. Each unit of output can be produced at a constant MC of 2, and the fixed cost is 10. What is the optimum output-variety combination?
Suppose the society's preferences (w) for quantity (q) and variety (n) can be categorized by the following equation: w = 4qn The economy has 200 units of input. Each unit of output can be produced at a constant MC of 2, and the fixed cost is 10. What is the optimum output-variety combination?
Chapter13: Factor Markets: With Emphasis On The Labor Market
Section: Chapter Questions
Problem 4QP: Compare the firms least-cost rule with how buyers allocate their consumption dollars.
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