Posted by john on .
new to economics, and struggling with some of its concepts. got this posed as a homework question, and i have to admit stumped as how to begin.
Suppose a firm finds that the marginal product of capital is 60 and the marginal product of labor is 20. If the price of capital is $6 and the price of labor is $2.50, describe how the firm should adjust its mix of capital and labor? What will be the result?
do i start with a total product cure or try and plot the variable and fixed costs.
any guidance would be great