Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20 pedicures per week and the marginal product of her salon's capital (MPK) equalp 50. Jamie pays her employee $600 per week and faces a price of capital is $1500 per week. Then: Select one: O a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK) b. Jamie is not minimizing her costs because (MPL x PL) < (MPK x PK) O c. Jamie is minimizing her costs because she is a price-taker in the markets for labor and capital O d. Jamie is not minimizing her costs because (MPL x PL) = (MPK x PK)
Jamie owns a Nail Salon. The marginal product of the labor Jamie employs (MPL) is equals 20 pedicures per week and the marginal product of her salon's capital (MPK) equalp 50. Jamie pays her employee $600 per week and faces a price of capital is $1500 per week. Then: Select one: O a. Jamie is minimizing her costs because (MPL/PL) = (MPK/PK) b. Jamie is not minimizing her costs because (MPL x PL) < (MPK x PK) O c. Jamie is minimizing her costs because she is a price-taker in the markets for labor and capital O d. Jamie is not minimizing her costs because (MPL x PL) = (MPK x PK)
Chapter7: Production And Cost In The Firm
Section: Chapter Questions
Problem 3.9P
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