Short Answer
A firm is using 20 units of labor and 30 units of capital to produce 4,000 units of output. At this combination the marginal product of labor is 50 and the marginal product of capital is 40. The price of labor is $30 and the price of capital is $20.
-To maximize output at the given cost the firm will increase ____________ and decrease ____________ until the MRTS equals _________.
Correct Answer:
Verified
Correct Answer:
Verified
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