If the product derived from the last dollar spent on labor is less than the product derived from the last dollar spent on capital, then the firm
A) is minimizing costs.
B) should use more labor and less capital to minimize costs.
C) should use less labor and more capital to minimize costs.
D) should increase the price paid to labor and decrease the price paid to capital to minimize costs.
Correct Answer:
Verified
Q124: Refer to the information provided in
Q125: Refer to the information provided in Figure
Q126: If marginal product is greater than average
Q127: Refer to the information provided in Figure
Q128: If the product derived from the last
Q130: A firm is operating such that the
Q131: Refer to the information provided in Figure
Q132: Assume that capital and labor are complementary
Q133: The cost-minimizing equilibrium condition can be written
Q134: When total product is maximized, marginal product
A)
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