EBK MICROECONOMICS
9th Edition
ISBN: 8220103630955
Author: Rubinfeld
Publisher: PEARSON
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Question
Chapter 14, Problem 11RQ
To determine
Increase in wage rate and its effect.
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If the demand for soccer tickets increases, why would an economist expect the salaries of soccer players to increase?
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Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
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