Unformatted text preview: production increase? Increasing the use of both inputs by 10% will result in Homer's costs increasing by exactly 10%. If Homer increases his use of all inputs by 10%, what will increase more, his production or his costs? Given that Homer can sell as many boats as he produces for $75,000, does his profits go up by 10% with a 10% increase in input use?...
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- Fall '09
- Microeconomics, Monotonic function, Convex function, $75,000