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If the price of output sells for $0.80 each, determine the profit maximizing quantities of labor and capital that should be used, assuming the price of labor is $4 and the price of capital is $8. If labor and capital are the only inputs, compute the profi

1.    If the price of output sells for $0.80 each, determine the profit maximizing quantities of labor and capital that should be used, assuming the price of labor is $4 and the price of capital is $8. If labor and capital are the only inputs, compute the profit of this firm.

 

Labor

MPL

 MRPL

MRPL/PL

Capital

MPK

 MRPK

MRPK/PK

1

24

 


1

40



2

16

 


2

30



3

12

 


3

28



4

8

 


4

10



5

4

 


5

5




0 0
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