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 A, the MRTS is ____________ (less than, greater than, equal to) the input price ratio, w/r. The total cost of producing 3,000 units of output with input combination A is $____________.
b. By moving from A to B, the firm _______________ (increases, decreases) labor usage and _______________ (increases, decreases) capital usage. At point B the MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r. The movement from A to B _______________ (increased, decreased) total cost by $_________.
c. At point C the firm __________________ the cost of producing 3,000 units of output. The MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r.
d. The optimal input combination is _________ units of labor and _________ units of capital. At this combination, total cost of producing 3,000 units is $____________.

Question

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 A, the MRTS is ____________ (less than, greater than, equal to) the input price ratio, w/r. The total cost of producing 3,000 units of output with input combination A is $____________.
b. By moving from A to B, the firm _______________ (increases, decreases) labor usage and _______________ (increases, decreases) capital usage. At point B the MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r. The movement from A to B _______________ (increased, decreased) total cost by $_________.
c. At point C the firm __________________ the cost of producing 3,000 units of output. The MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r.
d. The optimal input combination is _________ units of labor and _________ units of capital. At this combination, total cost of producing 3,000 units is $____________.

Quizplus · Accepted Answer

The Answer of 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 A, the MRTS is ____________ (less than, greater than, equal to) the input price ratio, w/r. The total cost of producing 3,000 units of output with input combination A is $____________.
b. By moving from A to B, the firm _______________ (increases, decreases) labor usage and _______________ (increases, decreases) capital usage. At point B the MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r. The movement from A to B _______________ (increased, decreased) total cost by $_________.
c. At point C the firm __________________ the cost of producing 3,000 units of output. The MRTS is _______________ (greater than, less than, equal to) the input price ratio, w/r.
d. The optimal input combination is _________ units of labor and _________ units of capital. At this combination, total cost of producing 3,000 units is $____________.

To Answer the Questions, Use the Following Figure That