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Suppose You Are the Manager of Big Mess Managers, a Large

question 76

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  Suppose you are the manager of Big Mess Managers, a large manufacturer of paper towels that uses two variable inputs and o that is fixed in the short- run. -Refer to the table above. In the short run, A = 9 and B = 27, but you expected the price of Input 2 to decrease. If the price of Input 2 decreases, which of the following is true? A) You should buy more of Input 1 and less of Input 2. B) You should buy more of Input 2 and less of Input 1. C) You should buy less of the Fixed Input. D) You should make no changes. Suppose you are the manager of Big Mess Managers, a large manufacturer of paper towels that uses two variable inputs and o that is fixed in the short- run.
-Refer to the table above. In the short run, A = 9 and B = 27, but you expected the price of Input 2 to decrease. If the price of Input 2 decreases, which of the following is true?


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