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Suppose That Capital Costs $10 Per Unit and Labour Costs

Question 108

Multiple Choice

Suppose that capital costs $10 per unit and labour costs $5 per unit.For a profit-maximizing firm operating at its optimal factor mix,if the marginal product of capital is 50,the marginal product of labour must be


A) 10.
B) 20.
C) 25.
D) 50.
E) 100.

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