Assuming that mpl 5 and mpk 10 assuming also that pl 2
Assuming that MPl = 5 and MPk = 10. Assuming also that Pl = $2 and Pk = $5. This implies that the firm should substitute labor for capital. Explain why
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who wins who loses under a wheat tax versus a subsidyhow does the deadweight loss of the tax compare to the deadweight
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if anns marginal rate of substitute of x for y is 5 - that is mux muy 5 - the price of x is 9 and the price of y is 2
assuming that mpl 5 and mpk 10 assuming also that pl 2 and pk 5 this implies that the firm should substitute labor
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