Suppose that MP_L = 20 and MP_K = 21.If W = 10 and R = 11,then a firm: A) is producing its output at the lowest possible cost. B) could reduce costs by employing more labor and less capital. C) could reduce costs by employing more capital and less labor. D) could minimize costs by employing more of both inputs.

Question

Quizplus · Accepted Answer

The Answer of Suppose that MP_L = 20 and MP_K = 21.If W = 10 and R = 11,then a firm: A) is producing its output at the lowest possible cost. B) could reduce costs by employing more labor and less capital. C) could reduce costs by employing more capital and less labor. D) could minimize costs by employing more of both inputs.

Suppose That MPL = 20 and MPK = 21

Suppose That MP_L = 20 and MP_K = 21