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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
Posted: Wed Jul 06, 2022 6:34 pm
by answerhappygod
- A Firm Needs To Produce 100 Units Of Its Output Using Labour And Machines At Its Current Input Combination The Margina 1 (129.97 KiB) Viewed 11 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. O a. $20 O b. $30 O c. $50 O d. $10