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ejoty ejoty
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A year ago

The figure below shows the isocost lines facing a firm producing golf tees.

Short description: A graph plots the quantity of L against the quantity of K. Long description: The horizontal axis represents the quantity of L. The vertical axis represents the quantity of K. The graph shows four lines. The first line representing TC equals 40 dollars (line 1) begins at (0, 8) and ends at (20, 0). The second line representing TC equals 60 dollars (line 2) begins at (0, 12) and ends at (30, 0). The third line representing TC equals 80 dollars (line 3) begins at (0, 16) and ends at (40, 0). The fourth line representing TC equals 100 dollars (line 4) begins at (0, 20) and ends at (50, 0).

FIGURE 8-4

Refer to Figure 8-4. The firm that is facing the isocost lines as shown will minimize its cost of production of any given output level if it employs capital and labour such that the ratio of the marginal product of labour to the marginal product of capital (MPL/MPK) is equal to



▸ 5.

▸ 5/2.

▸ 2/5.

▸ 2.

▸ Not able to determine from the information provided.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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bhturnerbhturner
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A year ago
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