Re: Doubts

Posted by Abhitesh on Jan 30, 2017; 12:10pm
URL: http://discussion-forum.276.s1.nabble.com/Doubts-tp7603095p7603137.html

Assuming MP's to be marginal products. What is the justification behind assuming MP(S)/MP(L) = p_S/p_L? This  is correct though.
How does above implies  MP(S)/MP(L) = L/S = 1/9? Try to evaluate these for general function B=S^a. L^1-a for better understanding.
Third you have computed labour cost for producing juice only, you also need to add seed and labour cost to produce berries.
Q2.pdf