Suppose you are the manager of Big Mess Managers, a large manufacturer of paper towels that uses two variable inputs and o that is fixed in the short- run.
-Refer to the table above. In the short run, A = 9 and B = 27, but you expected the price of Input 2 to increase. If the price of Input 2 rises, which of the following is true?

Question

Quizplus · Accepted Answer

When the price of Input 2 increases, it becomes more expensive relative to Input 1. To minimize costs, you would buy more of the cheaper input (Input 1) and less of the more expensive input (Input 2).

Suppose You Are the Manager of Big Mess Managers, a Large