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Plz answer the following 2 questions in detail 1. Assume the firm hires the cost-minimizing combination of labor and capital. The marginal product of the
Plz answer the following 2 questions in detail
1. Assume the firm hires the cost-minimizing combination of labor and capital. The marginal product of the last worker is 60 units and the marginal product of the last unit of capital is 20 units. If the wage rate is $30 per hour, what is the price of capital?
2. Assume that the price of labor falls to $10 per hour. The company should ____ the number of workers and ____ the amount of capital.
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