Refer to the following:
The price of capital (r) is $20.

-What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost?
A) 90K, 60L
B) 110K, 10L
C) 42K, 52L
D) 60K, 20L
E) 10K, 110L

Question

Refer to the following:
The price of capital (r) is $20.
 
-What combination of labor (L) and capital (K) can produce 5,000 units of output at lowest cost?
A) 90K, 60L 
B) 110K, 10L 
C) 42K, 52L 
D) 60K, 20L 
E) 10K, 110L

Quizplus · Accepted Answer

The combination of 60K and 20L is likely to produce 5,000 units of output at the lowest cost, assuming the production function and cost structure favor this mix of capital and labor for efficiency.

Refer to the Following