If the marginal product of labor is 100 and the price of labor is

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If the marginal product of labor is 100 and the price of labor is 10, while the marginal product of capital is 200 and the price of capital is $30, then what should the firm?


The firm should use relatively more capital

The firm should use relatively more labor

The firm should not make any changes – they are currently efficient

Using the Equimarginal Criterion, we can’t determine the firm’s efficiency level

 

  • 7 years ago
If the marginal product of labor is 100 and the price of labor is
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