11. Suppose that the current wage rate is $20 per hour, the rental rate of land is...

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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.

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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