X and Y are both factors of production. X's marginal product is 30 and Y's is 20. X is $5 each and Y is $4 each. Knowing that Y costs less than X, we can assume that the firm will make the same output at a cheaper cost by using less of X and more of L. Is this statement true or false? Explain.

X and Y are both factors of production. X's marginal product is 30 and Y's is 20. X is $5 each and Y is $4 each. Knowing that Y costs less than X, we can assume that the firm will make the same output at a cheaper cost by using less of X and more of L. Is this statement true or false? Explain.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 6WNG

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