If the Marginal Product of Labor Is 45 Units of Output

question 33

Essay

If the marginal product of labor is 45 units of output and the marginal product of capital is 56 units of output while the wage rate is $20 per worker and the cost of capital is $28 per machine, are these two inputs being used in the least-cost combination and what should be done if they are not?

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Definitions:

Cleft Lip

A congenital facial malformation where there is a physical split or gap in the upper lip, which can occur alone or with a cleft palate.

Suture Strain

The force applied to a suture, or stitch, used in surgical procedures, which can affect wound healing and suture integrity.

Heavily Sedated

A state of being under the influence of sedative medications to a degree that significantly reduces consciousness and bodily functions.

Cirrhosis

A late stage of scarring (fibrosis) of the liver caused by many forms of liver diseases and conditions, such as hepatitis and chronic alcoholism.