The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?
A)2 of a and 6 of b
B)6 of a and 2 of b
C)4 of a and 3 of b
D)3 of a and 4 of b

Question

The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?
A)2 of a and 6 of b 
B)6 of a and 2 of b 
C)4 of a and 3 of b 
D)3 of a and 4 of b

Quizplus · Accepted Answer

The Answer of  The table gives marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?
A)2 of a and 6 of b 
B)6 of a and 2 of b 
C)4 of a and 3 of b 
D)3 of a and 4 of b

The Table Gives Marginal Product Data for Resources a and B