The following table shows the marginal products of capital (K)and labour (L)for various methods for Firm ABC to produce 1000 toys per day.
TABLE 8-2
-Refer to Table 8-2.Suppose the firm is employing production method G.How should this firm adjust its use of capital and labour in order to minimize costs?
A)employ more capital and less labour
B)employ less capital and more labour
C)employ more capital and labour
D)employ less capital and labour
E)There is insufficient information to know.

Question

The following table shows the marginal products of capital (K)and labour (L)for various methods for Firm ABC to produce 1000 toys per day.
  TABLE 8-2
-Refer to Table 8-2.Suppose the firm is employing production method G.How should this firm adjust its use of capital and labour in order to minimize costs?
A)employ more capital and less labour 
B)employ less capital and more labour 
C)employ more capital and labour 
D)employ less capital and labour 
E)There is insufficient information to know.

Quizplus · Accepted Answer

Without the specific details of Table 8-2, such as the costs and productivity of capital and labor in production method G, it is impossible to determine the optimal adjustment for minimizing costs.

The Following Table Shows the Marginal Products of Capital (K)and