Suppose a firm uses labor and capital to produce output. The last unit of labor hired has a marginal product of 12 units of output, and the last unit of capital employed has a marginal product of 20 units
Use the optimal combination of inputs rule to calculate the price of capital if the price of labor is $6 per unit. The price of capital is
A) $2.
B) $10.
C) $20.
D) impossible to determine with the information given.
B
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Suppose a report was released today that showed the Euro-Zone inflation rate is running above the European Central Bank's inflation rate target
This leads people to expect that the European Central Bank will enact contractionary policy in the near future. Everything else held constant, the release of this report would immediately cause the demand for U.S. assets to ________ and the U.S. dollar will ________. A) increase; appreciate B) increase; depreciate C) decrease; appreciate D) decrease; depreciate
A firm will not hire additional workers once
A) it earns accounting profits. B) the additional cost of a worker equals the additional revenue from the worker. C) total product is rising. D) the company reaches its breakeven output level.
Holding labor demand constant, a leftward shift of the labor supply curve leads to a shortage in the labor market
a. True b. False Indicate whether the statement is true or false
Which of the following explains why pork-barrel spending is often approved, even when the spending is inefficient?
What will be an ideal response?