Multiple Choice
Suppose a firm that uses labor and capital as the only inputs in production is currently on the long-run expansion path.The marginal product of labor and capital at this least cost combination are 60 units and 80 units respectively and the wage rate of labor is $6.Calculate the rental cost of capital borne by the firm.
A) $10
B) $8
C) $5
D) $12
Correct Answer:
Verified
Correct Answer:
Verified
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