Question: Please explain step by step how to get the answer to this question. Question: If the marginal rate of technical substitution for a cost minimizing

Please explain step by step how to get the answer to this question.

Question:

If the marginal rate of technical substitution for a cost minimizing firm is 10, and the price of labor is

$5, what is the price of capital?

Select one:

a. $10

b. $0.5 - Correct

c. $2

d. $1

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Q:

Please explain step by step how to get the answer to this question. Question: Suppose a firm uses labor and capital to produce output. The last unit of labor hired has a marginal product of 12 units...

Q:

Question 1. Data normalization is a "process in which data inside a database is reorganized in such a way that users can better use that database for further queries and analysis". To normalize data...

Q:

Question 1. Data normalization is a "process in which data inside a database is reorganized in such a way that users can better use that database for further queries and analysis". To normalize data...

Q:

Can you please explain Step by Step how to get to the final answer, and where each number comes from. Thank you. Lester Inc. has 5 million shares outstanding, trading at $20/share. The company has...

Q:

Please solve question 6 and question 7. Refer to the circled portion on the table. Please explain step by step how you got the answer. Also please clearly label and separate work and answer so it is...

Q:

Please answer all the required questions in detail I hope the answer is not copy-paste I hope that the answer will be according to the concepts in the chapter 3 The following article summarizes the...

Q:

Please help me to answer the attached files ................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1 Submission deadline without penalties is 12 October 2017....

Q:

Please help me to answer the following file ............................................................................................... INVESTMENT AND PORTFOLIO MANAGEMENT COURSE ASSESSMENT 1...

Q:

help get the answers.. its a complete question 1. (10 points) Annie and David are painting their apartment. At the paint store, David says he prefers Canary Yellow to Bumblebee Yellow, Lime Yellow,...

Q:

Answer all...its my assignment Exercises Question 1 (Perfectly Competitive Market] Which of the following is most likely considered a typical firm in a perfectly oompetitive industry? a} Apple...

Q:

Two resistors are connected in series. One resistor has a resistance of 1000 ohms, and the other resistor value is unknown. the circuit is connected to a 30V power supply and there is a current of...

Q:

Lets modify the logistic differential equation of Example 1 as follows: (a) Suppose P(t) represents a fish population at time , where t is measured in weeks. Explain the meaning of the term 15. (b)...

Q:

Exenisel: For the general electric company, the observations of daily retarn rate of stock prices have been into account through the year of 2 0 1 9 based on the frequency distribution as illustrated...

Q:

world health organization. use the VRI/NO framework to analize why that firm migth be performing this way. 400 words.

Q:

1. To gain an understanding of the fact that relationships are something more than only cause and effect chains.

Q:

3. What is meant when we say that people with a Protestant character exhibit manipulative behaviour?

Q:

An improvement in the exchange of information in negotiations.