Business, 14.02.2020 17:18 dorianhenderson987

Write down the firm’s profit maximizing problem. Be sure to identify the variables the firm can choose and which it takes as given. What should the firm facing the following scenarios do?

(a) If the marginal product of capital is greater than the rental price of capital.
(b) If the marginal product of labor is less than the wage.

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Write down the firm’s profit maximizing problem. Be sure to identify the variables the firm can choo...