To minimize the cost of a particular level of output, a firm should produce where: a. labor...
Question:
To minimize the cost of a particular level of output, a firm should produce where:
a. labor input equal capital input
b. (MPl/MPk) = r/w (MP stands for marginal product, w is the wage rate, and r is the unit cost of capital)
c. (MPl/MPk) = r/w
d. labor cost equals the capital cost.
Marginal Product of Labor and Capital:
The marginal product of labor measures the change in output when the labor employed increases by 1 unit. The marginal product of capital likewise measures the change in output when capital employed increases by 1 unit.
Answer and Explanation: 1
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Marginal Product of Labor: Definition, Formula & Example
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Chapter 3 / Lesson 49
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Understand the meaning of marginal product of labor. Learn the marginal product of labor (MPL) formula, its significance, and how to calculate MPL with examples.
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