Question
How would you answer this ? A firm is successfully cost-minimizing while producing their desired output level. Each piece of capital costs $8 to rent
How would you answer this ?
A firm is successfully cost-minimizing while producing their desired output level. Each piece of capital costs $8 to rent by the hour and each worker is paid$10 per hour.
The firm's MPL is equal to 85, and MPK is equal to _______. Your answer should include only numbers. Round to the nearest integer, if necessary.
A shortage of rental capital causes the cost of renting capital to rise to $11.50 per hour. Assume there is no change to the wages paid to workers. To continue minimizing their cost, the firm should switch to a new production method that uses __________ workers and ___________ pieces of capital. For both blanks, choose from: more, fewer, the same number of. Make sure you are typing in your answer exactly as provided in the answer options.
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