This question has been answered by rsaikumaro on Oct 26, 2013. View Solution
janicehamscher posted a question Oct 26, 2013 at 8:47am
Suppose the marginal product of labor is 10 and the marginal product of capital is 8. If the wage rate is $5 and the price of capital is $2, then in order to minimize the costs the firm should use:
a. more capital and less labor
b. more labor and less capital
c. equal amounts of labor and capital
d. None of the statements is correct
answered the question Oct 26, 2013 at 9:26am
Rating:
Questions Answered: 105
Hi Please find...  View Full Answer

Download Preview:

Suppose the marginal product of labor is 10 and the marginal product of capital...