Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 18, Problem 1DQ
To determine
Impact of buying small quantity of input and its MRP is higher than the price.
Expert Solution & Answer
Explanation of Solution
When the firm purchase less quantity of input and the MRP is higher than the price, the firm will give up the profit that it could gain by purchasing an additional unit of input for that the MRP obtain by the firm is higher than the price the firm pay.
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Chapter 18 Solutions
Economics: Principles & Policy
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