True or False ? Why ? In the long run, Betty’s factory produces 10,000 widgets with cost-minimizing combination of 0 units of capital and 100 units of labor. The rent (cost of capital) and the wage (cost of labor) are both $40 per day. Betty’s marginal rate of technical substitution must be greater than 1 (with L on the x-axis and K on the y-axis)

True or False ? Why ? In the long run, Betty’s factory produces 10,000 widgets with cost-minimizing combination of 0 units of capital and 100 units of labor. The rent (cost of capital) and the wage (cost of labor) are both $40 per day. Betty’s marginal rate of technical substitution must be greater than 1 (with L on the x-axis and K on the y-axis)

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 11QP

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