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dalvirb dalvirb
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A year ago
Suppose a firm is using 100 units of labour and 50 units of capital to produce 200 completed client tax returns per day. The price of labour is $10 per unit and the price of capital is $5 per unit. The MPL equals 2 and the MPK equals 5. In this situation,

▸ the firm should decrease the use of both inputs.

▸ the firm could lower its production costs by increasing labour input and decreasing capital input.

▸ the firm could lower its production costs by decreasing labour input and increasing capital input.

▸ the firm is minimizing its costs.

▸ the firm should increase the use of both inputs.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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jordankites45jordankites45
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