Module 72 Featured Worksheetcost Minimization

This study source was downloaded by 100000867488176 from CourseHero.com on 05-30-2023 14:36:07 GMT -05:00https://www.coursehero.com/file/198380465/mod-72-featured-worksheetpdf/Powered by TCPDF (www.tcpdf.org) Ray/Anderson, Krugmans Economics for the AP Course, 3e 2019 BFW Publishers, Inc. Name __________________________ Module 72 Featured Worksheet Cost Minimization 1. Suppose the marginal product of a firms last unit of labor hired is 160 and the marginal product of the last unit of capital hired is 60. If the price of labor is 40 and the price of capital is $15, is the firm hiring the cost minimizing combination of labor and capital? Explain. 2. Suppose that the cost of capital for a firm is $300 and that workers are paid $200. If the marginal product of the last worker is 1,200 and the marginal product of the last unit of capital is 800, should the firm continue to hire this combination of capital and labor? Explain.