A perfectly competitive firm in the factor and product markets sells its output for $1 and pays factors PL = $9 and Pc = $12. What is the profit-maximizing combination of labor (L) and capital (C) for the firm?
What will be an ideal response?
The firm would employ 5 units of labor and 3 units of capital to maximize profit.
Economics
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A downward movement along the labor demand curve occurs when ________, assuming all else equal
A) the price of the output that the labor is used to produce increases B) the price of the output that the labor is used to produce decreases C) the wage rate increases D) the wage rate decreases
Economics
To measure how productive workers in the economy are, the best measure to use would be
a. real GDP. b. GDP divided by the population. c. GDP divided by the nation's capital stock. d. GDP divided by hours worked.
Economics