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pgakui pgakui
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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 $40 per unit and the price of capital is $1000 per unit. The MPL equals 24 and the MPK equals 600. 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.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
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ricyoungricyoung
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A year ago
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pgakui Author
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A year ago
this is exactly what I needed
Ivansitospeed@g
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Yesterday
Smart ... Thanks!
Chaldoren
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2 hours ago
Thanks
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