Lego boxes: A box of Legos consists of complex bricks and basic bricks
Lego boxes: 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))*(B2^(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.
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post Lego boxes: A box of Legos consists of complex bricks and basic bricks appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.