You are told that q = 12 can be produced by (L,K) = (5,6) and (L′,K′) = (4,5). Explain whether each of the following two statements is true, false, or uncertain. (a) (q, L, K) = (12, 5, 6) represents an efficient production plan. (b) (q, L′, K′) = (12, 4, 5) represents an efficient production plan.
You are told that q = 12 can be produced by (L,K) = (5,6) and (L′,K′) = (4,5). Explain whether each of the following two statements is true, false, or uncertain. (a) (q, L, K) = (12, 5, 6) represents an efficient production plan. (b) (q, L′, K′) = (12, 4, 5) represents an efficient production plan.
Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter7: Production, Inputs, And Cost: Building Blocks For Supply Analysis
Section: Chapter Questions
Problem 9TY
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You are told that q = 12 can be produced by (L,K) = (5,6) and (L′,K′) = (4,5). Explain whether each of the following two statements is true, false, or uncertain.
(a) (q, L, K) = (12, 5, 6) represents an efficient production plan.
(b) (q, L′, K′) = (12, 4, 5) represents an efficient production plan.
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