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Suppose a firm employs two kinds of inputs, capital at $100 per unit, and labour at $25 per unit. If ...

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Suppose a firm employs two kinds of inputs, capital at $100 per unit, and labour at $25 per unit. If ...

Suppose a firm employs two kinds of inputs, capital at $100 per unit, and labour at $25 per unit. If the marginal product of capital is 50, then the firm should ________ in order to minimize its production costs.

▸ employ more labour and more capital

▸ employ more capital and less labour

▸ employ more labour and less capital

▸ not change its current factor use

▸ There is insufficient information to make a recommendation.

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Microeconomics

Edition: 17^th

Author: Ragan

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