The productivity of capital and labor are as shown in the table below. The outpu

Question

The productivity of capital and labor are as shown in the table below. The output of these resources sells in a purely competitive market for $1 per unit. Cost of capital is $5 and cost of labor is $8. Use this information in answering question 1 through 5. MPP Capital MPP Capital Units of Labor MPP Labor MPP Labor Units of Capital 0 P Capital P Labor 0 40 25 20 15 10 4.5 36 32 24 20 16 2.5 5 0.4 6 0.2 The least cost combination of capital and labor for this firm to use in producing 192 units of output is? units of capital 2 _units of labor The profit maximizing combination of capital and labor is: units of capital units of labor 4. 5. The amount of economic profit is

Explanation / Answer

1 unit of l and 1 unit of capital

3 units of labour and 3 units of labour

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I must say the question does not provide full information. Related info was also to be uploaded.had to guess much. In general you can use in equilibrium mpp capital/P capital=mpp labour/P labour

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