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24-04-2020
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A firm has a Cobb-Douglas production function for its inputs of capital and labor. The firm is currently paying $4 per labor hour and $1 per machine hour. The firm is currently employing an equal number of machines and workers. If this bundle of inputs is cost-minimizing, we can infer about the marginal productivities of capital and labor at this point:

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24-04-2020

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