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There are 2 firms (i = 1,2) in an economy, which use capital only to produce final output. = The production function for
Posted: Mon Mar 21, 2022 4:28 pm
by answerhappygod
- There Are 2 Firms I 1 2 In An Economy Which Use Capital Only To Produce Final Output The Production Function For 1 (57.85 KiB) Viewed 47 times
There are 2 firms (i = 1,2) in an economy, which use capital only to produce final output. = The production function for Firm i takes the following form: Y;=A;x1/2 = (1) Assume that A1 = 1 and A2 = 2, and there are 5 units of capital in this economy. What is = the optimal allocation of capital between these two firms?