Labor equals the marginal resource cost of capital

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Reference no: EM131161974

If a firm is maximizing profit and the marginal revenue product of labor is $10 and the marginal revenue product of capital is $30, then the marginal resource cost of labor is $3, and the marginal resource cost of capital is $0.33 the marginal resource cost of labor is $0.33, and the marginal resource cost of capital is $3 the marginal resource cost of labor equals the marginal resource cost of capital; both are $300 the marginal resource cost of labor is 1/3 of the marginal resource cost of capital we have no way of knowing the marginal resource cost of either labor or capital.

Reference no: EM131161974

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