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# Suppose a Firm Uses Labor and Capital to Produce Output

Question 314
Multiple Choice
Question 314
Multiple Choice

## Suppose a firm uses labor and capital to produce output.The last unit of labor hired has a marginal product of 12 units of output, and the last unit of capital employed has a marginal product of 20 units.Use the optimal combination of inputs rule to calculate the price of capital if the price of labor is $6 per unit.The price of capital is A)$2.
B)$10. C)$20.
D)impossible to determine with the information given.

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