Suppose a chair manufacturer finds that the marginal rate of technical substitution of capital for labor in

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Suppose a chair manufacturer finds that the marginal rate of technical substitution of capital for labor in her production process is substantially greater than the ratio of the rental rate on machinery to the wage rate for assembly-line labor. How should she alter her use of capital and labor to minimize the cost of production?
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Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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