Answered You can hire a professional tutor to get the answer.
Consider two firms that operate in perfect competition with different levels of technology.
Consider two firms that operate in perfect competition with different levels of technology. Firm i maximizes profits using technology yi = zik α i each period by renting capital ki with the rental price R, where α ∈ (0, 1) determines the returns to scale. Firm j also maximizes profits using technology yj = zjk α j each period by renting capital kj with the rental price R, where α ∈ (0, 1). When zi > zj holds, would an efficient allocation of capital across firms be ki > kj? State your answer and prove it formally (mathematical derivations are required and you are not allowed to skip any necessary steps).
