Multiple Choice
If the marginal rate of technical substitution of labor for capital is 6,the price of labor is $18,and the price of capital is $9,then the firm
A) can substitute one unit of capital for six units of labor and keep output unchanged.
B) should use more labor and less capital.
C) should use more capital and less labor.
D) both a and b
E) both a and c
Correct Answer:
Verified
Correct Answer:
Verified
Q5: If the price of labor is $5
Q6: A cow will produce 8500 lbs.of milk
Q7: Refer to the following figure.The price of
Q8: Refer to the following graph.The price of
Q9: In the graph below,the price of capital
Q11: Following is a firm's expansion path.The
Q12: In the following graph,the price of capital
Q13: Suppose that when a firm increases output
Q14: Refer to the following graph.The price of
Q15: The marginal rate of technical substitution is<br>A)the