Question
hi
new to economics, and struggling with some of its concepts. got this posed as a homework question, and i have to admit stumped as how to begin.
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
do i start with a total product cure or try and plot the variable and fixed costs.
any guidance would be great
new to economics, and struggling with some of its concepts. got this posed as a homework question, and i have to admit stumped as how to begin.
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
do i start with a total product cure or try and plot the variable and fixed costs.
any guidance would be great