a) Suppose that in the production of computer software, the marginal rate of technical substitution between engineers and marketer is 5 for IBM and 3 for Microsoft. Explain why this outcome violates the condition for efficiency in production and how a voluntary exchange could make both companies better off.
a) Suppose that in the production of computer software, the
b) Ignoring rationing problems and black markets, under rent control (or any
c) What does the contract curve in an Edgeworth production box signify? Why do competitive
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