Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Economics

Authors: Robert H. Frank, Ben Bernanke Professor, Kate Antonovics, Ori Heffetz

6th Edition

0078021855, 9780078021855

More Books

Students also viewed these Economics questions

Question

How do we do subnetting in IPv6?Explain with a suitable example.

Answered: 1 week ago

Question

Explain the guideline for job description.

Answered: 1 week ago

Question

What is job description ? State the uses of job description.

Answered: 1 week ago

Question

What are the objectives of job evaluation ?

Answered: 1 week ago

Question

Write a note on job design.

Answered: 1 week ago