Answer
Option 2
$10
The price of L is wage.
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Total product of n inputs =sum of an MP
Total product of 1 labour =2 units
Total variable cost =AVC*TP
TVC (2) =5*2=10
MC (n) = (TVC (n)-TVC (p))/ (n-p)
It is true for n>p and n and p are non negative
TVC (n) =total variable cost of n units
TVC (p) = total variable cost of p units
MC (2) = (10-0)/ (2-0) =5
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Wage =MC*MP
Wage =5*2=10
The wage is $10
Suppose Kis the fixed input and L the variable input. Price of K = $6; Price...
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