(05.03 MC) Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $10 and the price of capital is $20? 01 unit of labor; 3 units of capital O2 units of labor; 1 unit of capital O3 units of labor; 4 units of capital 04 units of labor; 4 units of capital 05 units of labor; 5 units of capital

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter12: The Supply Of And Demand For Productive Resources
Section: Chapter Questions
Problem 2CQ
Question
(05.03 MC)
Use the table to answer the question that follows.
Quantity of Labor MP of Labor Quantity of Capital MP of Capital
1
30
1
50
2
25
2
40
3
20
3
35
4
15
4
15
5
10
5
5
What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $10 and the price of capital is $20?
01 unit of labor; 3 units of capital
O2 units of labor; 1 unit of capital
O3 units of labor; 4 units of capital
04 units of labor; 4 units of capital
05 units of labor; 5 units of capital
Transcribed Image Text:(05.03 MC) Use the table to answer the question that follows. Quantity of Labor MP of Labor Quantity of Capital MP of Capital 1 30 1 50 2 25 2 40 3 20 3 35 4 15 4 15 5 10 5 5 What combination of labor and capital would satisfy the input hiring rule that minimizes the cost of production, if the price of labor is $10 and the price of capital is $20? 01 unit of labor; 3 units of capital O2 units of labor; 1 unit of capital O3 units of labor; 4 units of capital 04 units of labor; 4 units of capital 05 units of labor; 5 units of capital
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