If the Ratio of the Marginal Product of Labor to the Marginal

question 28

Multiple Choice

If the ratio of the marginal product of labor to the marginal product of land is 1:3,a firm making an optimal input combination should

• A) employ three times as many workers as land units.
• B) employ one-third as many workers as land units.
• C) pay each worker three times as much as the price of a unit of land.
• D) pay each worker one-third as much as the price of a unit of land.
• E) use the same number of workers as units of land and pay each worker the same price as a unit of land.

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A set of rules that determines the sequence in which operations should be performed in mathematical expressions or procedures.

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