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Suppose That Capital Costs $8 Per Unit and Labour Costs

Question 17

Multiple Choice

Suppose that capital costs $8 per unit and labour costs $4 per unit. For a profit- maximizing firm operating at its optimal factor mix, if the marginal product of capital is 60, the marginal product of labour must be _ .


A) 30
B) 10
C) 120
D) 90
E) 20

Correct Answer:

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