If the cost of capital is $45 per hour, the wage paid to employees is $25 per hour, the marginal product of capital is 90 units per hour, and the marginal product of labor is 75 units per hour, to minimize its costs, the firm should _________ .
A) decrease the amount of labor used and increase the amount of capital used
B) not change the amount of labor or capital
C) increase the amount of labor and capital used
D) increase the amount of labor used and decrease the amount of capital used
Correct Answer:
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Q44: If the cost of capital is $100
Q45: If the cost of capital is $80
Q46: Q47: If the cost of capital is $100 Q48: Q50: Q51: To minimize costs, in the short- run, Q52: If the cost of capital is $100 Q53: Q54: 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![]()
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