Question
A firm is producing a product using only labor and physical capital. If the price of labor (wage rate) is $20/hr, cost of capital is
A firm is producing a product using only labor and physical capital. If the price of labor (wage rate) is $20/hr, cost of capital is $60/hr, and marginal product of labor is 300 units an hour - what must be the marginal product of capital if the firm is a profit maximizer?
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
