Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital] DK/DL = MPL/MPK MR > MC MPL/PL= MPK/ PK MPL = MPK

Which of the following represents the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital] DK/DL = MPL/MPK MR > MC MPL/PL= MPK/ PK MPL = MPK

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter7: Production And Cost In The Firm

Section: Chapter Questions

Problem 18PAE

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What is the optimal combination of Capital and Labor under the goal of cost minimization in the long run? [MR=Marginal Revenue, MC=Marginal Cost, MPL=Marginal Product of Labor, MPK=Marginal Product of Capital, K=Capital, L=Labor, PL =Price of Labor, PK =Price of Capital]
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