Suppose That Capital Costs $8 Per Unit and Labour Costs

question 17

Multiple Choice

Suppose that capital costs $8 per unit and labour costs $4 per unit. For a profit- maximizing firm operating at its optimal factor mix, if the marginal product of capital is 60, the marginal product of labour must be _ .

• A) 30
• B) 10
• C) 120
• D) 90
• E) 20

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The ability or capacity to influence or control the behavior of others or the course of events.

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