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Author Question: Suppose MPL = 20 and MPK = 40 and the rental rate on capital is 10 . If the level of production is ... (Read 32 times)

james9437

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on: Jul 1, 2018
Suppose MPL = 20 and MPK = 40 and the rental rate on capital is 10 . If the level of production is currently efficient, the wage rate must be
 a. 10
  b. 5
  c. 20
  d. 40

Question 2

Suppose a production function is q = K1/2L1/3 and in the short run capital (K) is fixed at 100 . If the wage is 10 and the rental rate on capital is 20, the fixed cost is
 a. 2,000
  b. 200
  c. 20,000
  d. 0


Ahnyah

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Reply #1 on: Jul 1, 2018
Answer to Question 1

b

Answer to Question 2

a


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james9437

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Reply #2 on: Jul 1, 2018
Thank you


Ahnyah

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Reply #3 on: Jul 1, 2018
No problemo


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