Answer to Question #90234 in Microeconomics for judith jasmine

Question #90234
Given that the total cost of producing a tin of milk is TC=wL+rK, where w,l,r and k are rent,labor,rent and capital, Find the maximum amounts of capital and labor required to produce a tin of milk?
1
Expert's answer
2019-05-27T12:20:05-0400

The amount of labour and capital used in production is optimal and maximizes output when MPL/w = MPK/r, where MPL and MPK are marginal product of labour and capital.


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