Question

Currently, the wage rate is​ $5 per worker​ hour, and the price of capital is​ $10 per machine hour. If the marginal productivity of labor is 7 units per hour and the marginal productivity of capital is 9 units per​ hour, how should a​ cost-minimizing firm adjust its input​ mix, assuming that it does not want to increase​ output?

Answer 1

here you go

Step-by-step explanation:

After a drop in the prices of capital inputs, labor accountants for a lager portion of a firm's factor costs ... The elasticity of demand for labor will be more elastic when ... had been utilizing only the labor of qualified US workers at a wage rate of $37 per hour.