A firm needs to produce 100 units of its output using labour and machines. At its current input combination, the margina

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A firm needs to produce 100 units of its output using labour and machines. At its current input combination, the margina

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A Firm Needs To Produce 100 Units Of Its Output Using Labour And Machines At Its Current Input Combination The Margina 1
A Firm Needs To Produce 100 Units Of Its Output Using Labour And Machines At Its Current Input Combination The Margina 1 (17.93 KiB) Viewed 21 times
A firm needs to produce 100 units of its output using labour and machines. At its current input combination, the marginal rate of substitution is 2. It faces a wage rate of $10 and a cost of machine equal to $20 per unit. The firm is not minimizing the cost of producing 100 units because, by hiring one more unit of labour, it can reduce its production cost by while still producing 100 units. a. $50 Ob. $20 c. $30 O d. $10
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