Question: Firm 1 and Firm 2 use the same type of production function, but Firm 1 is only 90% as productive as Firm 2. That is,
Firm 1 and Firm 2 use the same type of production function, but Firm 1 is only 90% as productive as Firm 2. That is, the production function of Firm 2 is q2 = f(L, K), and the production function of Firm 1 is q1 = 0.9f (L, K). At a particular level of inputs, how does the marginal product of labor differ between the firms?
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