Abraham Baldwin Agricultural College Economics Discussion


Hello I need help to write 4-6 sentences, answering this Question. Based on the following maximization condition:marginal product of labor/wage rate= marginal production of capital/ costs of capitalOffer as many explanations as possible for the following:ATM machines replacing bank tellersrobots replacing production workersonline teachingfewer secretariestypistsless first class mailAlso I need to respond to one of the Classmate 2-4 sentences I will post his respond when he submitted.Please find the key ideas, the question to be answered for the discussion.Thank you.

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Costs in the long run:
All costs are variable – firms can choose various combinations of inputs (capital and labor)
Firms can choose the combination of labor and capital that minimizes costs for a given level
of production or
maximizes output for a given cost.
It is the same model we used for utility maximization- just change the terms
The conditions that result from the model are:
marginal product of labor/ wage rate = marginal product of capital/ cost of capital
Any change in any of the four:
labor productivity
wage rates
the productivity of capital> technology
cost of capital
results in a change in the levels of capital and labor that are the optimal combination.

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