Refer to the following graph.The price of capital (r)is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A)At A,MRTS MP_L/ w. C)At A,MP_L MP_K. D)both a and b E)none of the above

Question

Refer to the following graph.The price of capital (r)is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A)At A,MRTS < 3/2. B)At A,MP_K / r > MP_L/ w. C)At A,MP_L > MP_K. D)both a and b E)none of the above

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The Answer of Refer to the following graph.The price of capital (r)is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A)At A,MRTS < 3/2. B)At A,MP_K / r > MP_L/ w. C)At A,MP_L > MP_K. D)both a and b E)none of the above

Refer to the Following Graph