Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital E-5 units of labor; 1 unit of capital
Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $5 and the price of capital is $10? A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital E-5 units of labor; 1 unit of capital
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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Use the table to answer the question that follows.
Quantity of Labor | MP of Labor | Quantity of Capital | MP of Capital |
1 | 30 | 1 | 50 |
2 | 25 | 2 | 40 |
3 | 20 | 3 | 35 |
4 | 15 | 4 | 15 |
5 | 10 | 5 | 5 |
What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the
A-1 unit of labor; 3 units of capital. B-2 units of labor; 2 units of capital
C-3 units of labor; 2 units of capital. D-4 units of labor; 4 units of capital
E-5 units of labor; 1 unit of capital
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