1. A firm's isoquant and isocost line are shown in the diagram below. The isoquant corresponds to an output of 50 units, and the isocost line corresponds to a cost of $225. Additionally, the price , and at point A the marginal of labor is $10. The MRT of labor for capital equals product per dollar spent on capital is the marginal product per dollar spent on labor. capital 25 A a. 9/10; greater than b. 9/10; less than c. 10/9; less than d. 10/9; greater than labor
1. A firm's isoquant and isocost line are shown in the diagram below. The isoquant corresponds to an output of 50 units, and the isocost line corresponds to a cost of $225. Additionally, the price , and at point A the marginal of labor is $10. The MRT of labor for capital equals product per dollar spent on capital is the marginal product per dollar spent on labor. capital 25 A a. 9/10; greater than b. 9/10; less than c. 10/9; less than d. 10/9; greater than labor
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 18PAE
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![1. A firm's isoquant and isocost line are shown in the diagram below. The isoquant corresponds to
an output of 50 units, and the isocost line corresponds to a cost of $225. Additionally, the price
, and at point A the marginal
of labor is $10. The MRT of labor for capital equals
product per dollar spent on capital is
the marginal product per dollar spent on labor.
capital
25
A
a. 9/10; greater than
b. 9/10; less than
c. 10/9; less than
d. 10/9; greater than
labor](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F347f0ad0-4c24-4e77-947b-fe82a05394cb%2F7a2dafad-f7ed-4875-aa60-1406b4b7a7c6%2Fojoayzt_processed.png&w=3840&q=75)
Transcribed Image Text:1. A firm's isoquant and isocost line are shown in the diagram below. The isoquant corresponds to
an output of 50 units, and the isocost line corresponds to a cost of $225. Additionally, the price
, and at point A the marginal
of labor is $10. The MRT of labor for capital equals
product per dollar spent on capital is
the marginal product per dollar spent on labor.
capital
25
A
a. 9/10; greater than
b. 9/10; less than
c. 10/9; less than
d. 10/9; greater than
labor
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