Suppose capital costs $10 per unit and labour costs $5 per unit. For a profit-maximising firm operating at its optimal factor mix, if the marginal product of capital is 50, then the marginal product of labour must be... a. 25. b. 50. c. 100. d. 20. e. 10.

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A: Diminishing marginal productivity occurs when the marginal product of a product diminishes when…

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A: MPL is the marginal product of labor. We can calculate MPL by finding partial derivative of Q wrt L.…

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A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Given the productivity function, P(L, K) 23L0.35K0.65, find the following: = A) Find the marginal…

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A: Answer -    MRTS (Marginal rate of technical substitution) :- The rate by which one factor need  to…

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A:

Q: Using the 3-point exhibits constant Carefully follow th

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Q: QUESTION 27 Refer to the information provided in Figure 7.8 below to answer the question(s) that…

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A: Marginal Rate of Technical Substitution (MRTS) = MPL/MPK

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A: d. Derive AVC(Q) Q=20K12L12Q=20x(20)12L12Q=89.44L12 APL=QL        =89.44L12L        =89.44L-12…

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Q: .Suppose the marginal product of labor is MPL=10 and the cost of each worker is w=50.  What is the…

A: MPL=10 w=50

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