Suppose for a particular production function thatmpl 36 kl, Ask an Expert

Economics

Suppose for a particular production function that

MP_L = 36 (K/L) MP_K = 36 (L/K)

If the price of capital is $5 per unit and the price of labor is $125 per unit, at the cost minimizing combination of capital and labor, the firm should employ

A. Five times as much labor as capital

B. Five times as much capital as labor

C. 125/36 units of capital and 5/36 units of labor

D. 36/125 units of capital and 36/5 units of labor

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91677651

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