If the Marginal Rate of Technical Substitution for a Cost

question 101

Multiple Choice

If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital?

• A)$0.5
• B)$1
• C)$2
• D)$10

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Definitions:

Shelf Registration

A regulatory provision that allows an issuer to register a new issue of securities without selling the entire issue at once, facilitating future sales.

Initial Registration

The process through which a company files necessary documents with the Securities and Exchange Commission (SEC) for its securities to be offered to the public for the first time.

Margin Call

A demand by a broker for an investor to deposit additional funds or securities to maintain the required minimum margin account balance.

Short Sale

A transaction where an investor borrows a security and sells it on the open market, planning to buy it back later at a lower price.