Answer to Question #80930 in Microeconomics for Muhammad talha

Question

What is
VMPxt/Vx=VMPxy/Vx=R

Answer 1

This equation is a first-order condition for maximizing revenue under the costconstraint condition, assuming that the input beam x has a price v.
VMPxt/Vx=VMPxy/Vx=R
Where VMPXT and VMPXY are the corresponding VMP input beam X in the production of the constrained product and other products, respectively.
An equation is the equivalent return relation that is satisfied if the input packet has a cost for the farmer.
Both sides of the equation are separated by the input beam v. Since the price of the input beam is the same for both outputs, these conditions do not imply a change in the distribution of the input beam between the production of T and Y with respect to the leads.
The equation states that the farmer must distribute the input beam in such a way that the last dollar spent on the input connection receives the same VMP ratio to the cost of the packet for both outputs