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3. A firm minimizes its costs by using inputs such that the marginal product of labor is 10 and the marginal product of capital
3. A firm minimizes its costs by using inputs such that the marginal product of labor is 10 and the marginal product of capital is 20. The price of capital is $10 per unit. What must the price of labor be?
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To minimize costs a firm should allocate its inputs in such a way that the mar...
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
