At the competitive equilibrium quantity supplied equals quantity ...

[fnuegbu]

At the competitive equilibrium quantity supplied equals quantity demanded in all markets.
 
  Indicate whether the statement is true or false

Question 2

At the XYZ Co, a unit of capital costs 3 times as much as a unit of labor. If the isoquants are convex, and the firm does not change its input mix in the long run, we can conclude that
 
  A) MPK = 3  MPL.
  B) the firm will not hire any capital.
  C) the firm will hire 3 times as much labor as capital.
  D) the firm will hire 3 times as much capital as labor.

[momo1250]

Answer to Question 1

True . When the MRS = MRT = ratio of prices, the optimal product mix is produced efficiently and firms sell at marginal cost.

Answer to Question 2

A

[fnuegbu]

Wow, this really help

[lkanara2]

Thanks for the timely response, appreciate it