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 capital costs $80 per unit and labour costs $24 per unit.Which production method minimizes the cost of producing 1000 toys per day.
A)method B
B)method C
C)method D
D)method E
E)method F

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 capital costs $80 per unit and labour costs $24 per unit.Which production method minimizes the cost of producing 1000 toys per day.
A)method B 
B)method C 
C)method D 
D)method E 
E)method F

Quizplus · Accepted Answer

Method B has the lowest total cost per unit, which is $104.

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