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A firm is currently producing such that: MPL = 30 W = 10 MPK = 20 To minimize the cost of production, this firm should: a. Use more labor and less capital which will (likely) decrease the MPL b. Use more labor and less capital which will (likely) increase the MPL C. Use less labor and more capital which will (likely) decrease the MPK Od. Use less labor and more capital which will (likely) increase the MPK v = 20

A firm is currently producing such that: MPL = 30 W = 10 MPK = 20 To minimize the cost of production, this firm should: a. Use more labor and less capital which will (likely) decrease the MPL b. Use more labor and less capital which will (likely) increase the MPL C. Use less labor and more capital which will (likely) decrease the MPK Od. Use less labor and more capital which will (likely) increase the MPK v = 20

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter7: Production Economics
Section: Chapter Questions
Problem 1.5CE
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A firm is currently producing such that: MPL = 30 W = 10 MPK = 20 To minimize the cost of production, this firm should: a. Use more labor and less capital which will (likely) decrease the MPL b. Use more labor and less capital which will (likely) increase the MPL C. Use less labor and more capital which will (likely) decrease the MPK Od. Use less labor and more capital which will (likely) increase the MPK v = 20
Transcribed Image Text:A firm is currently producing such that: MPL = 30 W = 10 MPK = 20 To minimize the cost of production, this firm should: a. Use more labor and less capital which will (likely) decrease the MPL b. Use more labor and less capital which will (likely) increase the MPL C. Use less labor and more capital which will (likely) decrease the MPK Od. Use less labor and more capital which will (likely) increase the MPK v = 20
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