Suppose for a Particular Production Function That $$M P _ { L } = 36 \left( \frac { K } { L } \right) M P _ { X } = 36 \left( \frac { L } { K } \right)$$

question 44

Multiple Choice

Suppose for a particular production function that $$M P _ { L } = 36 \left( \frac { K } { L } \right) M P _ { X } = 36 \left( \frac { L } { K } \right)$$ If the price of capital is $5 per unit and the price of labor is $125 per unit, at the cost-minimizing combination of capital and labor the firm should employ:

• A)five times as much labor as capital.
• B)five times as much capital as labor.
• C)125/36 units of capital and 5/36 units of labor.
• D)36/125 units of capital and 36/5 units of labor.

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Definitions:

Relative Orientation

The positioning or arrangement of something in relation to something else, often used in spatial, temporal, or hierarchical contexts.

PERCEIVE Framework

A theoretical or conceptual framework designed to help in understanding how individuals perceive their environment or situations, although specifics depend on the context in which "PERCEIVE" is applied.

Proximity

The closeness or physical distance between people, places, or objects, often affecting interaction and relationships.

Nonverbal Cues

Communication signals that are not spoken or written but observed through body language, gestures, and facial expressions.