Solved

Refer to the Following Graph

Question 8

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. Refer to the following graph.The price of capital (r) is $20. Why wouldn't the firm choose to produce 5,000 units of output with the combination at A? A) At A,MRTS < 3/2. B) At A,MP<sub>K</sub> / r > MP<sub>L </sub>/ w. C) At A,MP<sub>L</sub> > MP<sub>K</sub>. D) both a and b E) none of the above Why wouldn't the firm choose to produce 5,000 units of output with the combination at A?


A) At A,MRTS < 3/2.
B) At A,MPK / r > MPL / w.
C) At A,MPL > MPK.
D) both a and b
E) none of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: In the following graph,the price of labor

Q4: In the graph below,the price of capital

Q5: If the price of labor is $5

Q6: A cow will produce 8500 lbs.of milk

Q7: Refer to the following figure.The price of

Q9: In the graph below,the price of capital

Q10: If the marginal rate of technical substitution

Q11: Following is a firm's expansion path.The

Q12: In the following graph,the price of capital

Q13: Suppose that when a firm increases output