Suppose for a particular production function that If the price of capital is $5 per unit and the price of labor is $125 per unit,at the cost-minimizing combination of capital and labor the firm should employ
A) five times as much labor as capital.
B) five times as much capital as labor.
C) 125/36 units of capital and 5/36 units of labor.
D) 36/125 units of capital and 36/5 units of labor.

Question

Suppose for a particular production function that  If the price of capital is $5 per unit and the price of labor is $125 per unit,at the cost-minimizing combination of capital and labor the firm should employ
A) five times as much labor as capital. 
B) five times as much capital as labor. 
C) 125/36 units of capital and 5/36 units of labor. 
D) 36/125 units of capital and 36/5 units of labor.

Quizplus · Accepted Answer

The Answer of Suppose for a particular production function that  If the price of capital is $5 per unit and the price of labor is $125 per unit,at the cost-minimizing combination of capital and labor the firm should employ
A) five times as much labor as capital. 
B) five times as much capital as labor. 
C) 125/36 units of capital and 5/36 units of labor. 
D) 36/125 units of capital and 36/5 units of labor.

Suppose for a Particular Production Function That If the Price