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2. The following table gives the quantities of output that can be produced with different amounts of capital (K) and labor (L) used by a
2. The following table gives the quantities of output that can be produced with different amounts of capital (K) and labor (L) used by a firm. Units Units of Output of K 122 174 213 244 274 300 112 158 194 224 250 274 100 142 173 200 224 244 OHNWAUG 87 122 150 173 194 213 71 100 122 142 158 174 50 71 87 100 112 122 1 2 3 4 5 6 Units of L a. Compute the marginal product and average product of capital for L = 3 units as K varies from 1 unit to 6 units. b. Compute the marginal product and average product of labor for K = 1 units as L varies from 1 unit to 6 units. C. Suppose the firm is producing 87 units of output using 1 unit of capital and 3 units of labor. The cost of a unit of labor is RM10, and the cost of a unit of capital is RM20. Is the firm using a least cost combination of inputs? Why or why not
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