Two firms have the same technology and pay the same wages for labor. They have identical...

Two firms have the same technology and pay the same wages for labor. They have identical factories, but firm 1 paid a higher price for its factory than firm 2 did. They both maximize their profits and have upward-sloping marginal cost curves. Explain whether our theory would predict firm 1 to have a higher output than firm 2.

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Rahul Sunny answered 1 year ago

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