Author Question: If a firm is maximizing profit and the marginal revenue product of labor is 10 and the marginal ... (Read 89 times)

yoroshambo · **on:** Jun 30, 2018

If a firm is maximizing profit and the marginal revenue product of labor is 10 and the marginal revenue product of capital is 30, then
a. the marginal resource cost of labor is 3, and the marginal resource cost of capital is 0.33
b. the marginal resource cost of labor is 0.33, and the marginal resource cost of capital is 3
c. the marginal resource cost of labor equals the marginal resource cost of capital; both are 300
d. the marginal resource cost of labor is 1/3 of the marginal resource cost of capital
e. we have no way of knowing the marginal resource cost of either labor or capital

Question 2

The most recent data indicates households in the top fifth of the income distribution earn more than ten times as much income as those in the bottom fifth.
a. True
b. False