You are an efficiency expert hired by a manufacturing firm that uses K and L as inputs.The firm produces and sells a given output.If w = $40,r = $100,MPL = 4,and MPK = 40 the firm:
A) is cost minimizing.
B) should use less L and more K to cost minimize.
C) should use more K and less L to cost minimize.
D) is profit maximizing but not cost minimizing.
Correct Answer:
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Q12: You are an efficiency expert hired by
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