Suppose for a particular production function that If the price of capital is $5 per unit and the price of labor is $125 per unit, at the cost-minimizing combination of capital and labor the firm should employ
A) five times as much labor as capital.
B) five times as much capital as labor.
C) 125/36 units of capital and 5/36 units of labor.
D) 36/125 units of capital and 36/5 units of labor.
Correct Answer:
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