A firm's production function is given by .The marginal products of labor and capital are,respectively, and .Further,the wage rate is and the rental rate of capital is .What is the most efficient combination of labor and capital that also results in a total cost level of exactly $1,200?
A) (20, 50)
B) (25, 47.5)
C) (30, 45)
D) (40, 40)

Question

A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .What is the most efficient combination of labor and capital  that also results in a total cost level of exactly $1,200?
A) (20, 50) 
B) (25, 47.5) 
C) (30, 45) 
D) (40, 40)

Quizplus · Accepted Answer

The Answer of A firm's production function is given by  .The marginal products of labor and capital are,respectively,  and  .Further,the wage rate is  and the rental rate of capital is  .What is the most efficient combination of labor and capital  that also results in a total cost level of exactly $1,200?
A) (20, 50) 
B) (25, 47.5) 
C) (30, 45) 
D) (40, 40)

A Firm's Production Function Is Given by