[Solved] The Table Gives Marginal Product Data for Resources a and B

Question 285

Multiple Choice

Question 285

Multiple Choice

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assume that the prices of a and b are $15 and $20, respectively. To maximize profits, what combination of a and b should the employer hire?

A)3 of a and 5 of b
B)5 of a and 7 of b
C)7 of a and 7 of b
D)6 of a and 2 of b

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