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Unformatted text preview: < MP = 0 (1) Efficient levels of production, preferably to the point where MP = 0 iii) MP = 0 < X 1 (1) Too much X 1 for the given amount of X 2 iv) Zone I is Zone III for X 2 Once you fix an input, you limit increases in output on the long run graph to movement on a line parallel to the variable input’s axis at a value equal to the quantity of the fixed input. The short run total product graph resides along and perpendicular to that line. Answers III...
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- Spring '08
- Economics, Economics of production, blue book, Knightian