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Please explain step by step how to get the answer to this question. Question: Suppose a firm uses labor and capital to produce output. The
Please explain step by step how to get the answer to this question.
Question:
Suppose a firm uses labor and capital to produce output. The last unit of labor hired has a marginal
product of 12 units of output, and the last unit of capital employed has a marginal product of 20 units.
Use the optimal combination of inputs rule to calculate the price of capital if the price of labor is $6 per
unit. The price of capital is?
Select one:
a. $2
b. $10 - Correct
c. $20
d. $30
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