The current market wage rate is $10, the rental rate of land is $1,000 per unit, and

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The current market wage rate is $10, the rental rate of land is $1,000 per unit, and the rental rate of capital is $500. Production managers at a firm find that under their current allocation of factors of production, the marginal physical product of labor is 100, the marginal physical product of land is 10,000, and the marginal physical product of capital is 4,000. Is the firm minimizing costs? Why or why not?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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