A firm's production function is given by .The marginal products of labor and capital are,respectively, and .Further,the wage rate is and the rental rate of capital is .Suppose the firm wants to produce 27,000 units of output.What is the most efficient combination of labor and capital ?
A) (20, 20)
B) (30, 30)
C) (30, 90)
D) (90, 30)

Question

A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .Suppose the firm wants to produce 27,000 units of output.What is the most efficient combination of labor and capital  ?
A) (20, 20) 
B) (30, 30) 
C) (30, 90) 
D) (90, 30)

Quizplus · Accepted Answer

The Answer of A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .Suppose the firm wants to produce 27,000 units of output.What is the most efficient combination of labor and capital  ?
A) (20, 20) 
B) (30, 30) 
C) (30, 90) 
D) (90, 30)

A Firm's Production Function Is Given by