The price of capital (r) is $20. 180 in of cap 160 140 [120 100- 80...

 

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The price of capital (r) is $20. 180 in of cap 160 140 [120 £100- 80 60 40 20 0 20 40 80 100 120 140 160 180 Units of labor d) At point A, the Marginal Product of Labor (MPL) is 240 and the Marginal Product of Capital (MPK) is 80. The net change in total cost is a(n). (increase, decrease) of (isoquant, isocost line). Q-5,000 60 Q-14,000 and the firm can move to a lower e) What is the lowest possible cost of producing 5,000 units of output? f) What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost? g) At the optimal input combination to produce 5,000 units, assume that the marginal product of labor (MP) is 60. At this point, what is the marginal product of capital (MPx). h) At the optimal combination of inputs for producing 14,000 units of output, what is the marginal rate of technical substitution? The price of capital (r) is $20. 180 in of cap 160 140 [120 £100- 80 60 40 20 0 20 40 80 100 120 140 160 180 Units of labor d) At point A, the Marginal Product of Labor (MPL) is 240 and the Marginal Product of Capital (MPK) is 80. The net change in total cost is a(n). (increase, decrease) of (isoquant, isocost line). Q-5,000 60 Q-14,000 and the firm can move to a lower e) What is the lowest possible cost of producing 5,000 units of output? f) What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost? g) At the optimal input combination to produce 5,000 units, assume that the marginal product of labor (MP) is 60. At this point, what is the marginal product of capital (MPx). h) At the optimal combination of inputs for producing 14,000 units of output, what is the marginal rate of technical substitution?

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SOLUTION a At point A the Marginal Product of Labor MPL is 240 and the Marginal Product of Capital M... View the full answer