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Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
Edition 12ISBN: 978-1133189022 Exercise 28
Profit maximization implies that firms will make input choices in a marginal way. Explain why the following marginal rules found in this chapter are specific applications of this general idea:
a. MR L = ME L
b. MP L •MR = ME L = w
c. MVP L = ME L = w
d. MVP L = w
e. MVP L = ME L w If firms follow these various rules, will they also be producing a profit-maximizing level of output?That is, will they produce that quantity for which MR = MC? Will they also be minimizing costs if they use these rules? Explain your answers both intuitively and with algebra.
a. MR L = ME L
b. MP L •MR = ME L = w
c. MVP L = ME L = w
d. MVP L = w
e. MVP L = ME L w If firms follow these various rules, will they also be producing a profit-maximizing level of output?That is, will they produce that quantity for which MR = MC? Will they also be minimizing costs if they use these rules? Explain your answers both intuitively and with algebra.
Explanation
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The Marginal Rules available in the chap...
Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder
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