If the Price of Capital Is $24,the Price of Labor

question 42

Essay

If the price of capital is $24,the price of labor is $15,and the marginal product of capital is 16,the least costly combination of capital and labor requires that the marginal product of labor be ________.

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Definitions:

Break-even Point

The financial point at which total costs and total sales are equal, resulting in no net loss or gain for the business.

Variable Costs

These are costs that vary directly with the level of production or sales volume.

Budgeted Net Income

The estimated amount of money expected to be earned over a specific period after all expenses are subtracted.

Variable Costs

Costs that change in proportion to the level of production or business activity.