You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = S40, r= $100, MPL = 4, and MPK = 40 the firm: A.) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is prof maximizing but not cost minimizing.
You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces and sells a given output. If w = S40, r= $100, MPL = 4, and MPK = 40 the firm: A.) is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is prof maximizing but not cost minimizing.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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![You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces
and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A.J is cost minimizing. B.)
should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is profit
maximizing but not cost minimizing.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe823c37b-bb3e-479b-b109-d5bb3d9c860e%2Fd68be430-ee7a-4a1d-be98-f5a04820b16c%2Fkz5rtyd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:You are an efficiency expert hired by a manufacturing firm that uses Kand Las inputs. The firm produces
and sells a given output. If w = $40, r= $100, MPL = 4, and MPK = 40 the firm: A.J is cost minimizing. B.)
should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is profit
maximizing but not cost minimizing.
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