Suppose a firm employs two kinds of inputs,capital at $100 per unit,and labour at $25 per unit.If the marginal product of capital is 50,then the firm should in order to minimize its production costs.
A) employ more labour and more capital
B) employ more capital and less labour
C) employ more labour and less capital
D) not change its current factor use
E) There is insufficient information to make a recommendation.
Correct Answer:
Verified
Q95: The following table shows the marginal
Q96: Consider a firm that uses only labour
Q97: FIGURE 8- 4 Q98: FIGURE 8- 4 Q99: Movement from one point to another along Q101: Isoquants are usually drawn convex when viewed Q102: Isocost lines are downward sloping straight lines,reflecting Q103: When a cost- minimizing firm is faced Q104: The point of tangency between the short- Q105: Consider a firm that uses only labour
A)decreasing
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