Activity4-3-1Multipleinputdecisionsanswerkey - Unit Four...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Name: _____________________ Date: ______________________ Class: ______________________ The table below shows the marginal physical product and marginal revenue product schedule for labor (l) and capital (k) inputs. Both resources are variable and are employed in perfectly competitive markets. The price of labor is $2 and the price of capital is $3. Labor and capital are substitutable. 1. Complete the table above, then fill in the blanks or circle the correct term in the questions below. 2. Examination of the figures in the table above reveals that the firm sells its product in a __ Perfectly Competitive ___ product market at a price of _ $0.50 ___. 3. The least cost combination of labor and capital that would enable the firm to produce 64 units of its product is __ 1 _ labor and __ 3 ____ capital. Employing this combination of labor and capital, the firm’s: a) total output is ___ 64 __. b)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Activity4-3-1Multipleinputdecisionsanswerkey - Unit Four...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online