Essay
What is the last dollar rule for cost-minimization? Provide a brief explanation (in words)as well as the corresponding mathematical equality.If the firm is producing at a point where the isocost line is steeper than the isoquant,what does the last dollar rule imply (i.e. ,where is the last dollar most productive,L or K)and how should the firm alter its capital and labor in the long run?
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The last dollar a firm spends on capital...View Answer
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