Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hufflepuff Industries produces badger sweaters and currently uses [20] units of labor and [30] units of capital. The marginal product of the [20th] unit of

Hufflepuff Industries produces badger sweaters and currently uses \[20\] units of labor and \[30\] units of capital. The marginal product of the \[20th\] unit of labor is \[100\] sweaters, and the marginal product of the \[30th\] unit of capital is \[200\] sweaters. If the cost of each unit of labor \[(w)\] is \[\$20\] and this firm minimizes costs, what is the rental rate of capital \[(r)\]

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

International Economics Theory and Policy

Authors: Paul R. Krugman, Maurice Obstfeld, Marc Melitz

11th Edition

134519574, 9780134521046 , 978-0134519579

More Books

Students also viewed these Economics questions