1. The firm is operating efficiently if
"MPL\/w = MPK\/r,"
where r is rate of capital, MPK is marginal product of capital.
In our case
"MPL\/w = \\frac{100^{0.5}}{121^{0.5}}\u00f710 = 0.09."
So, the firm is operating efficiently if MPK/r = 0.09.
2. To find out if the amount of labor is optimal we need to know MPK and r.
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