Suppose a Firm That Uses Labor and Capital as the Only

question 71

Multiple Choice

Suppose a firm that uses labor and capital as the only inputs in production is currently on the long-run expansion path.The marginal product of labor and capital at this least cost combination are 60 units and 80 units respectively and the wage rate of labor is $6.Calculate the rental cost of capital borne by the firm.

• A)$10
• B)$8
• C)$5
• D)$12

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Definitions:

Cycloheptene

A cyclic hydrocarbon with the molecular formula C7H12, featuring a seven-membered ring with one double bond.

N-Bromosuccinimide

A chemical reagent represented by the formula C4H4BrNO2, often used as a brominating and oxidation agent in organic synthesis.

HOMO

Highest Occupied Molecular Orbital, which is the highest energy molecular orbital that contains electrons in a molecule.

Pentadienyl Cation

The pentadienyl cation is a positively charged ion featuring a five-carbon chain with alternating double and single bonds.