Examlex

Solved

Refer to the Following

question 41

Multiple Choice

Refer to the following:
The price of capital (r) is $20.
Refer to the following: The price of capital (r)  is $20.    -Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A)  At A, MRTS < 3/2. B)  At A, MP<sub>K</sub> / r > MP<sub>L </sub>/ w. C)  At A, MP<sub>L</sub> > MP<sub>K</sub>. D)  both a and b E)  none of the above
-Why wouldn't the firm choose to produce 5,000 units of output with the combination at A?


Definitions:

Related Questions