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Skizzle234 Skizzle234
wrote...
Posts: 483
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5 years ago
Suppose a firm uses labor and capital to produce output. The last unit of labor 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 labor is $6 per unit. The price of capital is

• $2.

• $10.

• $20.

• impossible to determine with the information given.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
Read 65 times
2 Replies

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Replies
wrote...
5 years ago
$10.
Skizzle234 Author
wrote...
5 years ago
Thank you
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