skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Suppose the productivity of labor and capital are as shown in the accompanying table. The output of these resources sells in a purely competitive market for $1 per unit. Both labor and capital are hired under purely competitive conditions at $1 and $3, respectively.

Units of
capital

MP of
capital

Units of
labor

MP of
labor

1
2
3
4
5
6
7
8

24
21
18
15
9
6
3
1

1
2
3
4
5
6
7
8

11
9
8
7
6
4
1
1/2

a. What is the least-cost combination of labor and capital to employ in producing 80 units of output? Explain.
b. What is the profit-maximizing combination of labor and capital the firm should use? Explain. What is the resulting level of output? What is the economic profit? Is this the least costly way of producing the profit-maximizing output?

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top