QUESTION 3 Two inputs, labour (L) and capital (K) are used to produce a given output. The Marginal Product of Lis equal to K: the Marginal Product of K is equal to L The hourly wage is w = 1; the interest rate is r= 2. Which of the following mixes of inputs could be cost minimizing for some level of production? O a. (K-0, L-100) Ob.(K=100, L-200) OC (K-200, L=100) Od.(K-1, L=3) O . (K-0, L-3)

QUESTION 3 Two inputs, labour (L) and capital (K) are used to produce a given output. The Marginal Product of Lis equal to K: the Marginal Product of K is equal to L The hourly wage is w = 1; the interest rate is r= 2. Which of the following mixes of inputs could be cost minimizing for some level of production? O a. (K-0, L-100) Ob.(K=100, L-200) OC (K-200, L=100) Od.(K-1, L=3) O . (K-0, L-3)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 34CTQ: What is the relationship between marginal product and marginal cost? (Hint: Look at the curves.) Why...

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