A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = NK %3D The price of labour is $10, and price capital $20. If the firm needed to produce 100 units, how much capital and how much labour should they use in the long-run?
A firm operates in a perfectly competitive output market and a perfectly competitive input market. The production function for the firm is: f(N, K) = NK %3D The price of labour is $10, and price capital $20. If the firm needed to produce 100 units, how much capital and how much labour should they use in the long-run?
Chapter13: Factor Markets: With Emphasis On The Labor Market
Section13.1: Factor Market
Problem 1ST
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