Suppose That Capital Costs $50 Per Unit and Labour Costs

question 132

Multiple Choice

Suppose that capital costs $50 per unit and labour costs $20 per unit.If the marginal product of capital is 100 and the marginal product of labour is 30,a cost-minimizing firm should

• A)employ more of both capital and labour.
• B)employ less of both capital and labour.
• C)employ more capital and less labour.
• D)employ less capital and more labour.
• E)not change its current factor use.

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Institutions of higher education that offer undergraduate and postgraduate degrees in various fields.

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A way to express a number as a part of a whole out of 100.

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