If skilled labor is three times the cost of unskilled labor, a profit-maximizing firm will vary the quantity of each type of labor until the
a. marginal product of each is the same.
b. amount of unskilled labor used is three times the quantity of skilled labor used.
c. amount of unskilled labor used is one-third the quantity of skilled labor used.
d. marginal product of unskilled labor is one-third that of skilled labor.
D
Economics
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The World Bank specializes in making loans to promote
A) so-called stand-by arrangements and credits. B) short-term assistance when a nation experiences a financial crisis. C) financial stability. D) long-term development and growth.
Economics
A monopolist faces the inverse demand curve P = 60 - Q. It has variable costs of Q2 so that its marginal costs are 2Q, and it has fixed costs of 30. The monopoly's profit-maximizing output is
A) 5. B) 10. C) 15. D) 20.
Economics