A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP L = 60 and MP K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40.
-The firm can increase ____________ by one unit while reducing ____________ by _________ unit(s), and keep output constant. This will reduce cost by $____________.

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The Answer of A firm is producing 1,000 units of output with 40 units of labor and 30 units of capital. The marginal product of the last units of labor and capital are, respectively, MP L = 60 and MP K = 120. The prices of labor and capital are, respectively, w = 30 and r = 40.
-The firm can increase ____________ by one unit while reducing ____________ by _________ unit(s), and keep output constant. This will reduce cost by $____________.

A Firm Is Producing 1,000 Units of Output with 40