11. Suppose that the current wage rate is $20 per hour, the rental rate of land is...
Question:
11. Suppose that the current wage rate is $20 per hour, the rental rate of land is $10,000 per acre, and the rental rate of capital is $2,500. The manager of a firm determines that the value of the marginal product of labor is $400, the value of the marginal product of an acre of land is
$200,000, and the value of the marginal product of capital is $4,000. Is the firm maximizing profit?
Explain your response.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: