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(2) Assume that a firm uses two types of input in the production of

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(2) Assume that a firm uses two types of input in the
production of a certain commodity. What is the maximum
output if the marginal product of input 1 is MP1 = 100X2 ?
X1 and the marginal product of input 2 is MP2 = 100X1 ?
X2, the total amount that can be spent on inputs is $1,000,
the price of input 1 is $2, and the price of input 2 is $5?
Solution
2000 is maximum output of the firm

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(2) Assume that a firm uses two types of input in the production of a certain commodity. What is the maximum output if the marginal product of input 1 is MP1 = 100X2 ? X1 and the marginal product of input 2 is MP2 = 100X1 ? X2, the total amount that can be spent on inputs is $1,000, the price of inp ...
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