Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / A box of Legos consists of complex bricks and basic bricks

A box of Legos consists of complex bricks and basic bricks

Accounting

A box of Legos consists of complex bricks and basic bricks. The production function of Lego boxes is assumed to be: Y=(B1(2/3)(2/3))x(B2(1/3)(1/3)) Where B1 denotes the number of basic bricks and B2 the number of complex bricks. Boxes of Legos are assembled in Denmark, combining these complex and basic bricks. Assuming that the Lego company optimizes its production, explain why the relative price of a complex brick relative to a basic brick should be equal to the ratio of marginal product of a complex brick over the marginal product of a basic brick.

Option 1

Low Cost Option
Download this past answer in few clicks

2.88 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE