A firm sells its output in a perfectly competitive market and hires two inputs, capital and labor, in perfectly competitive factor markets. The product price is $15 per unit, the wage is $75 per day, and the marginal product of capital is 3. If the firm is choosing the least-cost combination of labor and capital, the firm's marginal product of labor and the price of capital must be equal to which of the following? (A) (B) (C) (D) (E) Marginal Product of Labor 25 25 755 5 Price of Capital $5 $45 $15 $25 $45
A firm sells its output in a perfectly competitive market and hires two inputs, capital and labor, in perfectly competitive factor markets. The product price is $15 per unit, the wage is $75 per day, and the marginal product of capital is 3. If the firm is choosing the least-cost combination of labor and capital, the firm's marginal product of labor and the price of capital must be equal to which of the following? (A) (B) (C) (D) (E) Marginal Product of Labor 25 25 755 5 Price of Capital $5 $45 $15 $25 $45
Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter18: The Markets For The Factor Of Production
Section: Chapter Questions
Problem 3QCMC
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![56. A firm sells its output in a perfectly competitive
market and hires two inputs, capital and labor, in
perfectly competitive factor markets. The product
price is $15 per unit, the wage is $75 per day, and
the marginal product of capital is 3. If the firm is
choosing the least-cost combination of labor and
capital, the firm's marginal product of labor and
the price of capital must be equal to which of the
following?
(A)
(B)
(C)
(E)
Marginal Product of Labor Price of Capital
23555
$5
$45
$15
$25
$45](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd4524f9-6be7-4a96-8a6a-efcb62d2dc1c%2Fb2b08715-cd3b-48fa-a218-92319335b2c0%2Fhqwvx37_processed.png&w=3840&q=75)
Transcribed Image Text:56. A firm sells its output in a perfectly competitive
market and hires two inputs, capital and labor, in
perfectly competitive factor markets. The product
price is $15 per unit, the wage is $75 per day, and
the marginal product of capital is 3. If the firm is
choosing the least-cost combination of labor and
capital, the firm's marginal product of labor and
the price of capital must be equal to which of the
following?
(A)
(B)
(C)
(E)
Marginal Product of Labor Price of Capital
23555
$5
$45
$15
$25
$45
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