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 Kto 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 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 Kto cost minimize.C.) should use more K and less L to cost minimize. D.) is profit maximizing but not cost minimizing.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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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 L and more K to cost minimize.C.) should use more Kand less L to cost minimize. D.j is profit maximizing but not cost minimizing.
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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.J is cost minimizing. B.) should use less Land more K to cost minimize.C.) should use more Kand less Lto cost minimize. D.j is profit maximizing but not cost minimizing.
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