Question
Suppose the marginal product of labor is0.5q/Land the marginal product of capital is0.5q/k, where q is the quantity produced using L units of labor and
Suppose the marginal product of labor is0.5q/Land the marginal product of capital is0.5q/k, where q is the quantity produced using L units of labor and K units of capital.In the long run,the firm will hire equal amounts of capital and labor
A.when the wage equals the rental rate for capital.
B.when the wage is half of the rental rate for capital.
C.all the time.
D.at no point.
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Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo
5th Global Edition
1292304154, 978-1292304151
