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Suppose a Firm Uses Labour and Capital to Produce Output

question 218

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Suppose a firm uses labour and capital to produce output.The last unit of labour hired has a marginal product of 12 units of output, and the last unit of capital employed has a marginal product of 20 units.Use the optimal combination of inputs rule to calculate the price of capital if the price of labour is $6 per unit.The price of capital is


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Achievement Task

Activities or goals set with the purpose of demonstrating or testing one's own ability to accomplish a specific achievement.

Extrinsic Rewards

Benefits or incentives provided by an external source, such as money or praise, which motivate individuals to perform certain actions.

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