A firm is operating such that the marginal product of labor is 10 and the marginal product of capital is 20. The firm is minimizing its costs only if
A. the rental rate is half the wage.
B. the wage is half the rental rate.
C. since capital is more productive than labor, the firm must be minimizing cost.
D. Given this information the firm can't be minimizing cost under any circumstances.
Answer: B
Economics
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What will be an ideal response?
Economics
A change in which of the following causes a movement along — not a shift in — the IS curve?
A) autonomous consumption B) government purchases C) financial frictions D) all of the above E) none of the above
Economics