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plumgoat10Lv1
28 Sep 2019
You are an efficiency expert hired by a manufacturing firm that uses K and L as 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 L and more K to cost minimize.
C.) Should use more K and less L to cost minimize.
D.) Is profit-maximizing but not cost-minimizing.
You are an efficiency expert hired by a manufacturing firm that uses K and L as 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 L and more K to cost minimize.
C.) Should use more K and less L to cost minimize.
D.) Is profit-maximizing but not cost-minimizing.
Darryn D'SouzaLv10
28 Sep 2019
