Variable Input 1 $20 A Variable Input 2 Fixed Input Price $30 $40 Marginal Product B 60 Suppose you are the manager of Super Suds, a large manufacturer of laundry detergent that uses two variable inputs and one input that is fixed in the short-run. Refer to the table above. In the short run, if A = 40 and B = 40, which of the following is true? Select one: OA. You should buy more of Input 1 and less of Input 2. OB. You should buy more of Input 2 and less of Input 1.

Variable Input 1 $20 A Variable Input 2 Fixed Input Price $30 $40 Marginal Product B 60 Suppose you are the manager of Super Suds, a large manufacturer of laundry detergent that uses two variable inputs and one input that is fixed in the short-run. Refer to the table above. In the short run, if A = 40 and B = 40, which of the following is true? Select one: OA. You should buy more of Input 1 and less of Input 2. OB. You should buy more of Input 2 and less of Input 1.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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