Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL, is $100 per unit. Marginal cost, MC, is at minimum when labor, L, is equal to O 2 units. 4 units. 3 units. O 5 units.

ENGR.ECONOMIC ANALYSIS
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QUESTION 39
The folllowing table shows data for a simple production function.
Capital (K). Labor (L)
10
0
10
1
10
2
3
4
5
6
10
10
10
10
TP or Q
AP
MP
6
14
20
14
8
Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL, is $100 per unit. Marginal cost, MC, is at minimum when labor, L, is equal to
O2 units.
O4 units.
O 3 units.
5 units.
Transcribed Image Text:QUESTION 39 The folllowing table shows data for a simple production function. Capital (K). Labor (L) 10 0 10 1 10 2 3 4 5 6 10 10 10 10 TP or Q AP MP 6 14 20 14 8 Assume that the cost of capital, PK, is $50 per unit, and the cost of labor, PL, is $100 per unit. Marginal cost, MC, is at minimum when labor, L, is equal to O2 units. O4 units. O 3 units. 5 units.
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