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Economics 12th Edition by William Baumol, Alan S Blinder
Edition 12ISBN: 978-0538453691Economics 12th Edition by William Baumol, Alan S Blinder
Edition 12ISBN: 978-0538453691 Exercise 6
A profit-maximizing firm expands its purchase of any input up to the point where diminishing returns have reduced the marginal revenue product so that it equals the input price. Why does it not pay the firm to "quit while it is ahead," buying so small a quantity of the input that the input's MRP remains greater than its price
Explanation
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A firm continues to expand its output by...
Economics 12th Edition by William Baumol, Alan S Blinder
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