You are an efficiency expert hired by a manufacturing firm that uses Kand Las 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 Land more K to cost minimize.C.) should use more Kand less L to cost minimize. Dj is profit maximizing but not cost minimizing.

You are an efficiency expert hired by a manufacturing firm that uses Kand Las 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 Land more K to cost minimize.C.) should use more Kand less L to cost minimize. Dj is profit maximizing but not cost minimizing.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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