Suppose capital costs $10 per unit and labour costs $5 per unit. For a profit-maximising firm operating at its optimal factor mix, if the marginal product of capital is 50, then the marginal product of labour must be... a. 25. b. 50. c. 100. d. 20. e. 10.
Suppose capital costs $10 per unit and labour costs $5 per unit. For a profit-maximising firm operating at its optimal factor mix, if the marginal product of capital is 50, then the marginal product of labour must be... a. 25. b. 50. c. 100. d. 20. e. 10.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 2SQ
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Suppose capital costs $10 per unit and labour costs $5 per unit. For a profit-maximising firm operating at its optimal factor mix, if the marginal product of capital is 50, then the marginal product of labour must be...
a.
25.
b.
50.
c.
100.
d.
20.
e.
10.
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