A firm uses 80 hours of labor and 6 units of capital to produce 10,000 gadgets per day. Labor's marginal product is 4 gadgets per hour and the marginal product of capital is 20 gadgets per unit. Each unit of labor costs $8 per hour and each unit of capital costs $50 per unit. If the firm wants to continue producing 10,000 gadgets per day at the lowest possible cost, it should

Use more labor and fewer capital.

Explanation:

Given that,

For producing 10,000 gadgets,

Labor hours use = 80

Capital = 6 units

Marginal product of labor = 4 gadgets per hour

Marginal product of capital = 20 gadgets per unit

Cost of each unit of labor = $8 per hour

Cost of each unit of capital = $50 per unit

Therefore,

Marginal product per dollar for labor is as follows:

        = 0.5

Marginal product per dollar for capital is as follows:

        = 0.4

Hence, the marginal product per dollar for labor is greater than the marginal product per dollar for capital, which means that the firm should use more labor and fewer capital.

answer; ///i do believe that its called a cancelled )

a

b

b

a

c

b

d

d

none of these are correct, as they are all sources of american law

a