producer is hiring 20 units of labor and 6 units of capital (bundle A) .The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases expenditures on labor by $1 and decreases expenditures on capital by $1,then
A) cost remains constant and output decreases by 8 units.
B) cost remains constant and output increases by 12 units.
C) cost remains constant and output increases by 20 units.
D) output remains constant and cost increases by $8.
E) output remains constant and cost decreases by $2.
Correct Answer:
Verified
Q2: Which of the following is FALSE?
A)A change
Q3: Refer to the following figure.The price of
Q4: Refer to the following figure.The price of
Q5: Suppose that when a firm increases output
Q6: Refer to the following graph.The price of
Q7: Refer to the following figure.The price of
Q8: Refer to the following figure.The price of
Q9: The marginal rate of technical substitution is
A)the
Q10: Refer to the following graph.The price of
Q11: Refer to the following figure.The price of
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