Answered: For a cost minimizing firm, what is the…

For a cost minimizing firm, what is the price of capital If the price of labor is $8 and the marginal rate of technical substitution is 47 Select one: O a. $8 O b. $0.5 O c. $4 O d. $2

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4QR

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Question

For a cost minimizing firm, what is the price of capital If the price of
labor is $8 and the marginal rate of technical substitution is 4?
Select one:
O a. $8
O b.
O c. $4
d. $2
$0.5

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