Answered step by step
Verified Expert Solution
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 \[(r)\]? Choose 1 answer: Choose 1 answer: (Choice A) \[\$20\] A \[\$20\] (Choice B) \[\$50\] B \[\$50\] (Choice C) \[\$10\] C \[\$10\] (Choice D) \[\$30\] D \[\$30\] (Choice E) \[\$40\] E \[\$40\]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started