Suppose the marginal product of labor is 10 and the marginal product of capital is 8. If the wage rate is $5 and the price of capital is $2, then in order to minimize costs the firm should use:

a) more capital and less labor.

b) more labor and less capital.

c) equal amounts of labor and capital.

d) None of the statements is correct.

inorder to minimize the cost, the firm should use (b) more labor and less capital

Explanation:

The term “marginal productivity” refers to the extra output gained by adding one unit of labor; all other inputs are held constant. So, the technology and efficiency of the factory stays the same. Marginal productivity is the extra jeans sewn, that is output gained, by hiring an extra worker, for example.

so the company can minimize the cost of production by bring in more labour and proving less capital.

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

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