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 decrease. If the price of Input 2 decreases, which of the following is true?
A) You should buy more of Input 1 and less of Input 2.
B) You should buy more of Input 2 and less of Input 1.
C) You should buy less of the Fixed Input.
D) You should make no changes.
Correct Answer:
Verified
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