Solved

When We Solve the Firm's Dual Production Problem (I

Question 174

Multiple Choice

When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:


A) marginal product per unit cost of each variable input.
B) marginal product of capital.
C) marginal product of labor.
D) marginal cost of production.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q168: The total cost (TC) of producing computer

Q169: What is the economies of scope character

Q170: Incremental cost is the same concept as

Q171: In the short run, suppose average total

Q172: For any given level of output:<br>A) marginal

Q173: Scenario 7.2:<br>The production function for earthquake detectors

Q175: Scenario 7.2:<br>The production function for earthquake detectors

Q176: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3095/.jpg" alt=" Figure 7.4.2 -The

Q177: A firm employs 100 workers at a

Q178: Scenario 7.3:<br>Use the production function: Q =