A producer is hiring 20 units of labor and 6 units of capital bundle A).The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases labor by one unit and decreases capital by 1 unit,then
A)cost remains constant and output increases by 20 units.
B)cost remains constant and output decreases by 20 units.
C)output remains constant and cost increases by $8.
D)output remains constant and cost decreases by $8.
E)both cost and output remain constant.

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The Answer of A producer is hiring 20 units of labor and 6 units of capital bundle A).The price of labor is $10,the price of capital is $2,and at A,the marginal products of labor and capital are both equal to 20.Beginning at A,if the producer increases labor by one unit and decreases capital by 1 unit,then
A)cost remains constant and output increases by 20 units.
B)cost remains constant and output decreases by 20 units.
C)output remains constant and cost increases by $8.
D)output remains constant and cost decreases by $8.
E)both cost and output remain constant.

A Producer Is Hiring 20 Units of Labor and 6