If the marginal rate of technical substitution of labor for capital is 6, the price of labor is $18, and the price of capital is $9, then the firm
A) can substitute one unit of capital for six units of labor and keep output unchanged.
B) should use more labor and less capital.
C) should use more capital and less labor.
D) both a and b
E) both a and c
Correct Answer:
Verified
Q70: Refer to the following: Q71: Refer to the following: Q72: If a firm is producing the level Q73: A firm is using 500 units of Q75: You overhear a businessman say: "We want Q77: Diseconomies of scale Q77: A cow will produce 8500 lbs. of Q78: Refer to the following: Q79: Long-run total cost Q79: If a firm is producing the level Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)exist when fixed cost increases
A)represents the lowest possible cost
