Microeconomics

Suppose the marginal product of labor is 8 and the marginal product of capital is 1 Further suppose that the wage

Question

Suppose the marginal product of labor is 8 and the marginal product of capital is 1. Further suppose that the wage

rate is $10 and the price of capital is $2. In the long run, in order to minimize costs, what adjustments should the firm make to its input mix? Why?

Microeconomics

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