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xiaoyu000 xiaoyu000
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A year ago
Suppose a firm is using 1500 units of labour and 20 units of capital to produce 100 tonnes of mineral ore. The price of labour is $20 per unit and the price of capital is $1000 per unit. The MPL equals 25 and the MPK equals 750. In this situation,

▸ the firm is minimizing its costs.

▸ the firm should increase the use of both inputs.

▸ the firm could lower its production costs by decreasing labour input and increasing capital input.

▸ the firm could lower its production costs by increasing labour input and decreasing capital input.

▸ the firm should decrease the use of both inputs.
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Microeconomics

Microeconomics


Edition: 17th
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sbe0921sbe0921
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A year ago
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xiaoyu000 Author
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A year ago
Helped a lot
dianeflunder
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Smart ... Thanks!
Turboturner
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2 hours ago
Correct Slight Smile TY
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