Multiple Choice
A competitive firm in a competitive labor market faces the following conditions: Q = 12K½L½,with the market output price of $100 per unit and the market wage rate of $60 per unit of labor and a market rental price of capital of $100 per unit.How many units of capital should the firm use?
A) 75
B) 85
C) 100
D) 115
Correct Answer:
Verified
Correct Answer:
Verified
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