Assume that Alex uses capital and labour to produce a good. The unit price of capital is $2 and the unit price of labour is $4. The initial stock of capital is 40 units and the initial quantity of labour is 20. If the stock of capital decreases to 20 units, what should be the additional quantity of labour if Alex wants to incur the same cost?

Assume that Alex uses capital and labour to produce a good. The unit price of capital is $2 and the unit price of labour is $4. The initial stock of capital is 40 units and the initial quantity of labour is 20. If the stock of capital decreases to 20 units, what should be the additional quantity of labour if Alex wants to incur the same cost?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter30: The Labor Market

Section: Chapter Questions

Problem 13E

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