Refer to the following figure. The price of capital is $50 per unit:
What is the marginal rate of technical substitution at each cost minimizing equilibrium point?
A. 0.40
B. 2.00
C. 2.50
D. 0.80
E. impossible to tell without marginal products
Answer: A
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A. nominal interest rates. B. capital gains taxes. C. personal income deduction. D. income tax rate.
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Answer the following statement true (T) or false (F)
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