Marginal rate of technical substitution for labor

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A perfectly competitive firm has Marginal Rate of Technical Substitution for labor with capital K/L . That is ?MRTS?_LK=K/L. The prices of labor and capital are P_L=1 and P_K=2 dollars respectively. The firm has decided that the lowest total cost they want to incur is TC = 20 dollars. What is the optimal amount of labor and capital the firm will employ?

Reference no: EM131009649

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