Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A competitive firm is using only labour and capital as inputs, and it maximizes its profits in the long run. You know that the firm

A competitive firm is using only labour and capital as inputs, and it maximizes its profits in the long run. You know that the firm pays an hourly wage of $20 and its hourly cost of a unit of capital is $25. if this firm's marginal product of labour is 30 units per hour, then its marginal product of capital per in the long run. hour must be O A. 24 O B. 16.67 O C. 40 D. 37.5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Simple Accounting

Authors: Gustav Muhsfeldt

1st Edition

B005MAAH4W

More Books

Students also viewed these Accounting questions

Question

b. Compute the mean value of this distribution.

Answered: 1 week ago