Short Answer
Consider a scenario where the firm hires only two inputs, labor and capital. Assume that the price of labor (the wage rate) is $30 and the price of capital (the rental cost of capital) is $10. Also, assume that the current level of output is 200 and the level of employment is 10. In addition, assume that when the firm hires 9 works, its output level is only 190. What is the marginal cost when 10 workers are hired (assume the short-run)?
Correct Answer:
Verified
Correct Answer:
Verified
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