The price of labor is $1,000 per day, and the price of capital is $3,000 per day. To hire inputs in a cost-minimizing way, the f

Question

pashok25 [27]

3 years ago

11

The price of labor is $1,000 per day, and the price of capital is $3,000 per day. To hire inputs in a cost-minimizing way, the f

irm should

Business

1 answer:

olga nikolaevna [1] · Answer 1 · 2022-03-07T10:48:44+03:00

Answer:

make no changes to the mix of inputs

Explanation:

Since in the question it is mentioned that the labor marginal product is 30 square feet and the capital marginal product is 90 square feet also the labor price is $1,000 and the capital price is $3,000 now to hire the inputs in order to minimize the cost the firm should not do any kind of changes with respect to the input mix