To Answer the Questions, Use the Following Figure That

question 73

Short Answer

To answer the questions, use the following figure that shows a firm's isoquant for producing 3,000 units of output and four isocost curves. Labor and capital each cost $100 per unit.

-Answer the following:
a. At point E, the MP per dollar spent on ____________ is less than the MP per dollar spent on ____________. The total cost of producing 3,000 units of output with input combination E is $_________.
b. The movement from E to F reduces the MP per dollar spent on ____________ and increases the MP per dollar spent on ____________. This movement __________________ (increased, decreased) total cost by $____________.
c. At input combination C the MP per dollar spent on labor is __________________ (greater than, less than, equal to) the MP per dollar spent on capital.
d. Input combination D costs $____________. The firm would not use this combination to produce 3,000 units of output because _______________________________________.