Two firms together employ 100 units of labor and 100 units of capital. Firm 1 employs 20

Question:

Two firms together employ 100 units of labor and 100 units of capital. Firm 1 employs 20 units of labor and 80 units of capital. Firm 2 employs 80 units of labor and 20 units of capital. The marginal products of the firms are as follows: Firm 1: MP1l = 50, MP1k = 50; Firm 2: MP2l = 10, MP2k= 20. Is this allocation of inputs economically efficient?