Asked by
Beniz Worlase
on Nov 04, 2024
Verified
A firm produces 15 units of output from the last dollar it spends on labor and 10 units from the last dollar spent on capital. The firm should
A) employ more labor and less capital.
B) employ more capital and less labor.
C) employ more capital and labor.
D) employ less capital and labor.
Last Dollar Spent
The concept of allocating resources until the marginal utility of expenditure on each good or service is equal, maximizing utility.
- Examine the significance of input costs on the exchange between labor and capital.
Verified Answer
DE
Learning Objectives
- Examine the significance of input costs on the exchange between labor and capital.
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