profit-maximizing firm

[ranjankumarnayak5]

78.If a profit-maximizing firm's marginal product of labor equals I ton of output, while
the marginal product of capital equals 7 tons of output and the use of capital is priced at
Rs.14 per unit, then
A. the price of labor must be Rs.2.
B. the price of labor must be Rs.7.
C. the price of labor must be Rs.14 as well.
D. none of the above is true.

[Dr. Strange]

For maximum profit,
p*MPL = w   and p*MPK=r

so dividing both eqn we get w=2
 

[ranjankumarnayak5]

Thank you. Sir