The First-Order Conditions for Maximizing Profits, = P ×

question 93

Multiple Choice

The first-order conditions for maximizing profits, = P × F(K,L) - wL − rK,are:

• A) P × {  F(K, L) /  K} − r = 0 and P × {  F(K, L) /  L} − w = 0.
• B) P × MP_K − r = 0 and P × MP_L − w = 0.
• C) VMP_K = r and VMP_L = w.
• D) All of the answers are correct.