The price of capital is $400 per unit. The price per unit of labour is $ The minimum cost of producing 1,200 units of output is $ To produce 1,200 units of output at the least cost the firm should use units of labour. The Marginal Rate of Technical Substitution at each cost minimizing equilibrium point is If the firm decides that total cost must not exceed $30,000, the maximum amount of output it can produce is To produce 800 units of output at the least cost the firm should use units of capital.

The price of capital is $400 per unit. The price per unit of labour is $ The minimum cost of producing 1,200 units of output is $ To produce 1,200 units of output at the least cost the firm should use units of labour. The Marginal Rate of Technical Substitution at each cost minimizing equilibrium point is If the firm decides that total cost must not exceed $30,000, the maximum amount of output it can produce is To produce 800 units of output at the least cost the firm should use units of capital.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Lesson 8 - Costs Question 3
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