Activity4-3-1Multipleinputdecisionsanswerkey

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

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

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