Suppose that labor and capital are perfect substitutes. The existing technology permits 1 machine to do the work of 2 workers. A firm wants to
Suppose that labor and capital are perfect substitutes. The existing technology permits 1 machine to do the work of 2 workers. A firm wants to produce 100 units of output. Suppose the price of capital is $500 per machine per week. What combination of inputs will the firm use if the weekly salary of each worker is $300? What if the weekly salary is $225
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