Table 7.1.5 indicates various combinations of labor and capital that can be used to produce a...

 

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Table 7.1.5 indicates various combinations of labor and capital that can be used to produce a given level of output for a product. Table 7.15 Laber (XI) 2.00 4,00 6.00 9:00 16.00 26.00 3600 Capinl OCZ) 3400 23:00 15.00 1.00 3.00 1.00 0.75 If the price of labor is $13.86 per unit and the price of capital $5.95 per unit, what is the economically optimal amount of labor and capital to use? Table 7.1.5 indicates various combinations of labor and capital that can be used to produce a given level of output for a product. Table 7.15 Laber (XI) 2.00 4,00 6.00 9:00 16.00 26.00 3600 Capinl OCZ) 3400 23:00 15.00 1.00 3.00 1.00 0.75 If the price of labor is $13.86 per unit and the price of capital $5.95 per unit, what is the economically optimal amount of labor and capital to use?

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To determine the economically optimal combination of labor and capital we need to calculate the cost ... View the full answer