-Which of the following is true of point a in Exhibit 7-17?
A) The MRTS of labor for capital is equal to the ratio of the wage rate to the price of capital.
B) The MRTS of labor for capital is less than the ratio of the wage rate to the price of capital.
C) The firm would be producing its output at the lowest possible cost.
D) The MRTS of labor for capital is greater than the ratio of the wage rate to the price of capital.
E) The ratio of the marginal product of labor to the price of capital is equal to the ratio of the wage rate to the price of capital.
Correct Answer:
Verified
Q6: Which of the following is not true
Q7: All combinations of inputs along an isoquant
Q8: Technological efficiency means that
A) technology is constantly
Q9: An isoquant is negatively sloped because
A) labor
Q10: An isoquant shows the possible combinations of
Q12: Isoquants map combinations of inputs and outputs
Q13: The marginal rate of technical substitution between
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