Explain how output of the firm can be increased
If the MPPL/MPPK in the production of a good is less than w/r, why is the producer not in producer equilibrium? Explain how, with no change in budget size for the firm and with the given factor price ratio, output of the firm can be increased.
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The water is identical in the two sizes and John gets no utility from the containers themselves, only from the water. How to define a utility function?
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Explain how, with no change in budget size for the firm and with the given factor price ratio, output of the firm can be increased.
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