The price of labor is 1and the price of machines is 2 per


A firm's production function is given by = min{M, L1/2}, where is the number of machines and is the amount of labor that it uses. The price of labor is $1and the price of machines is $2 per unit. The firm's long-run marginal cost curve is

  1. a straight line with slope 2.
  2. upward sloping and gets flatter as Q increases.
  3. upward sloping and gets steeper as Q increases.
  4. a straight line with slope 1.

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Business Management: The price of labor is 1and the price of machines is 2 per
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