The table below presents the output and input levels: K L 100 2 200 250 4 270 Also assume that the per unit cost of capital is $10. Since the firm has two units of capital, the firm's total fixed cost is $20. Also assume that the cost of each unit of labor is $50. What is the marginal cost when four units of labor (L) are employed? 1. 2. 2. 2. 2. 2.
The table below presents the output and input levels: K L 100 2 200 250 4 270 Also assume that the per unit cost of capital is $10. Since the firm has two units of capital, the firm's total fixed cost is $20. Also assume that the cost of each unit of labor is $50. What is the marginal cost when four units of labor (L) are employed? 1. 2. 2. 2. 2. 2.
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.7P
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