Production_Problems_Corrected[1]

Production_Problems_Corrected[1] - 3. When P X = $100, MP X...

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Production Problems 1. When MR Q = $20, P X = $70 and MP X = 3, what is the MRP X ? MRP X = ($20)(3) = $60. 2. Is the employment of X optimal or should it increase or should it decrease? Since MRP is less than P, it should decrease.
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Unformatted text preview: 3. When P X = $100, MP X = 5, and MP Y = 4, relative employment levels are optimal provided P Y = ? 5/4 = $100/P Y 5P Y = $400 P Y = $80....
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