Assume a firm is producing 1000 units of a good by using two inputs, capital and labor, whose per unit prices are $50 and $20
Assume also that the marginal physical product of the last unit of capital is 25 and the marginal physical product of the last unit of labor is 15. In order to minimize its costs of production, the firm should adjust its combination of inputs by employing more labor and less capital. Indicate whether the statement is true or false
TRUE
Economics
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If a union threatens to strike during a peak demand period, it is more likely to
a. Have its conditions accepted b. Have its conditions rejected c. Get laughed at d. All of the above
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