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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In a manner consistent with moral principles, ensuring actions are right and good from an ethical standpoint.

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