A firm employs capital and labor according to the production function f(K,L) = 3K + L. Wage is w=1 and the interest rate is r=2. The cost minimizing use of capital and labor is such that: O a. The firm employs Le K in proportion K=3L O b. The firm only employs Capital O c. The firm only employs Labor O d. The firm employs capital and labor so that 3K=2L O e. The firm employs L e K in proportion L=3K

A firm employs capital and labor according to the production function f(K,L) = 3K + L. Wage is w=1 and the interest rate is r=2. The cost minimizing use of capital and labor is such that: O a. The firm employs Le K in proportion K=3L O b. The firm only employs Capital O c. The firm only employs Labor O d. The firm employs capital and labor so that 3K=2L O e. The firm employs L e K in proportion L=3K

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 4QR

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